The first word and the last word in the budgetary process: A comparative institutional analysis of proposal and veto authorities

This study examines the role of proposal authority and executive veto in the budgetary process. A five stage sequential model of the budgetary process with three institutional actors — a legislature, an appropriations committee, and an executive — is presented. We examine: (i) the factors that affect the executive's power in shaping the final budget when the executive is granted proposal authority; (ii) how increased veto authority, in combination with executive proposal authority, affects the executive's power in forming the final budget; and (iii) the effects of different types of proposal authority and veto rules on the efficiency of the budgetary process.