Office of Management and Budget

• Author: Jeffrey Lehman, Shirelle Phelps

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The Office of Management and Budget (OMB), formerly the Bureau of the Budget, is an agency of the federal government that evaluates, formulates, and coordinates management procedures and program objectives within and among departments and agencies of the EXECUTIVE BRANCH. It also controls the administration of the FEDERAL BUDGET, while routinely providing the president of the United States with recommendations regarding budget proposals and relevant legislative enactments. The Bureau of the Budget was first established in the Executive Office of the President pursuant to REORGANIZATION PLAN No. 1 of 1939 (5 U.S.C.A. app.), effective July 1, 1939. Its functions were reorganized and the office renamed OMB by EXECUTIVE ORDER No. 11,541 of July 1, 1970. Since the reorganization, the OMB has played a central role in analyzing the federal budget and making recommendations for changes in the budget. Its director, who is appointed by the president, is a key advisor on fiscal policy. The director often appears before congressional committees to explain budgetary proposals.

The OMB assists the president in developing and maintaining effective government by reviewing the organizational structure and management procedures of the executive branch to ensure that the intended results are achieved. It works to develop efficient coordinating mechanisms to implement government activities and to expand interagency cooperation.

The OMB assists the president and executive departments and agencies in preparing the budget and in formulating the government's fiscal program. It also publishes the president's proposed Budget of the U.S. Government every

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year. Once Congress approves a budget, the OMB supervises and controls the administration of it. In addition, it advises the president on proposed legislation and recommends to the president whether to sign or VETO legislative enactments.

The office also assists in developing regulatory reform proposals and programs for paperwork reduction, especially reporting burdens of the public. The OMB helps in considering, clearing, and, where necessary, preparing proposed executive orders and proclamations that will have an impact on the federal budget.

The OMB has assumed an oversight role in determining the effectiveness of federal programs. It plans and develops information systems that provide the president with program performance data, and it plans...