The primary function of the Office of Management and Budget (OMB) is to prepare the annual U.S. federal budget. The federal budget, over $2.2 trillion in 2003, is approximately 22 percent of all spending in the U.S. economy. Spending and tax recommendations by the OMB are closely watched and influenced by business leaders. The OMB serves the president of the United States, developing fiscal and MANAGEMENT policies and coordinating government- wide program analysis and implementation. The OMB’s major responsibilities include
• preparation of the president’s budget
• oversight of financial management, federal procurement, and information technology
• review and clearance of proposed legislation, regulations, and executive orders
• oversight of program management
• implementation of other statutory responsibilities
• providing continuity during transitions to new presidential administrations
While the OMB serves the president of the United States, the GENERAL ACCOUNTING OFFICE (GAO) serves the U.S. Congress. Depending on which parties are in control of Congress and the White House, the GAO and OMB can play important roles in FISCAL POLICY decisions. Often analysts at the two agencies will disagree about the projected level of government tax revenue and the potential cost of proposed legislation. During the 1990s, in debates regarding balanced budgets and, later, the use of budget surpluses, OMB and GAO projections were frequently used to argue for and against policy measures. In addition to politically sensitive budget and tax issues, the OMB develops policies to improve government statistics and information management.