Enactment falls under the Programming Phases of the Planning, Programming, Budgeting, and Execution (PPBE) process. It’s an action taken by Congress on the President’s Budget (PB) and is a 3 step process to include budget resolution, authorizations, and appropriations. It’s consists of the 4th phase of the Budget Process. The Budget Process is the legislative mechanism whereby Congress authorizes DoD programs and appropriates funds requested in the PB.
Budget Process – Phase #4 – Enactment of Appropriations by the Congress and Execution
The final phase is the enactment of appropriations by the Congress and execution of these appropriations. Congress reviews the President’s budget and authorizes and appropriates funds for various purposes, timeframes and amounts. The President’s budget as modified by Congress becomes the basis for the financial plan for each agency. Authorization Acts establish the purpose and guidelines for a given activity and the maximum amounts that may be appropriated, however, they do not convey obligational authority. Appropriations Acts provides us with the budget authority to enter into obligations that will result in immediate or future outlays involving Government funds (i.e., to commit, obligate and expend funds). [1]
Appropriations
A provision of legal authority by an act of the Congress that permits Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriation usually follows enactment of authorizing legislation. An appropriation act is the most common means of providing budget authority. Appropriations do not represent cash actually set aside in the Treasury for purposes specified in the appropriation act; they represent limitations of amounts which agencies may obligate during the time period specified in the respective appropriation acts. [1]
See Authorization & Appropriations
AcqLinks and References:
- [1] Defense Acquisition Guidebook (DAG) – Chapter 1
- DoD Army PPBE Executive Overview
- Procedures and Schedule for FY 10-15 Integrated Program and Budget Review
- DoD 7000.14-R Financial Management Regulation
- DoD Inflation Handbook (2006), Chapter 6.6
Updated: 5/30/2018