The budget process consists of four (4) phases. 
- Submission of budget estimates to the Office of Budget (FMB) by Budget Submitting Offices (BSOs) throughout the Department of Defense (DoD) for review and final approval by the Secretary of the (Navy, Air Force and Army).
- Submission of budget estimates by the Service Component to the Office of the Secretary of Defense (OSD) and the Office of Management and Budget (OMB) for review and final approval by the Secretary of Defense (SECDEF) and the President.
- Submission of budget estimates by the President to the Congress for its review and approval.
- Enactment of appropriations by the Congress and execution of these appropriations
Phase #1 – Submission of budget estimates to the Office of Budget (FMB)
Within each service component the development of estimates to support the President’s budget occurs during the service component and the OSD/OMB budget reviews. These events take place during specific timeframes. The first phase consists of the submission of budget estimates to FMB by Budget Submitting Offices (BSO) throughout the DoD for review and final approval by the secretary of each service component. After a detailed review of these exhibits, subsequent Program Objective Memorandum (POM) changes (if any), a question and answer phase normally takes place and FMB budget analysts may request additional information prior to issuing adjustments to the BSOs’ budgets (marks) in the form of issue papers to the respective BSOs, appropriation and resource sponsors. If any recipients disagree with the recommendations contained in the adjustments, they are permitted to submit reclamas or issue paper comments stating their position. Final FMB adjustments (decisions) are then incorporated into the budget submission. 
Phase #2 – Submission of budget estimates to the SECDEF
The second phase is the submission of budget estimates by the each service component to OSD and OMB for review and final approval by SECDEF and the President. The OSD and OMB budget staffs review these exhibits and conduct hearings to gather additional information. These staffs then prepare Program Budget Decisions (PBD) and Management Initiative Decisions (MIDs) that are ultimately signed by the SECDEF, the Deputy SECDEF or the Under SECDEF (Comptroller) (USD(C)). These PBDs/MIDs are reviewed in draft form by all interested. If appropriate, a program office position is forwarded by the Assistant SEC for Financial Management and Comptroller in a formal coordination document. After consideration of the Department’s position, the PBD/MID is signed. 
Phase #3 – Submission of budget estimates by the President to the Congress
The third phase is the submission of budget estimates by the President to the Congress for its review and approval. 
Final Phase #4 – Enactment of appropriations by the Congress and execution of these appropriations
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 provide 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). 
Next = Budget Execution
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