The Budget and Accounting Act created which agencies for the President and Congress respectively?

The Budget and Accounting Act created which agencies for the President and Congress respectively?

• A. CBO for Congress and OMB for President
• B. OMB for the President and GAO for Congress
• C. Treasury for President and GAO for Congress
• D. GAO for President and OMB for Congress

Answer: (B)

The Budget and Accounting Act of 1921 established a central budget office for the President—the Bureau of the Budget, which later became the Office of Management and Budget (OMB)—and it created the General Accounting Office to serve Congress as its auditing and accountability agency. That pairing is why the correct choice is the one that assigns the President’s budget office to the Bureau of the Budget/OMB and Congress’s audit office to GAO. The Congressional Budget Office wasn’t created until 1974 to provide independent budget analysis for Congress, so it isn’t what the Act established. The Treasury isn’t the agency created by this Act, and GAO is intended for Congress, not the President, so any option that places GAO with the President wouldn’t fit.

The Budget and Accounting Act of 1921 established a central budget office for the President—the Bureau of the Budget, which later became the Office of Management and Budget (OMB)—and it created the General Accounting Office to serve Congress as its auditing and accountability agency. That pairing is why the correct choice is the one that assigns the President’s budget office to the Bureau of the Budget/OMB and Congress’s audit office to GAO. The Congressional Budget Office wasn’t created until 1974 to provide independent budget analysis for Congress, so it isn’t what the Act established. The Treasury isn’t the agency created by this Act, and GAO is intended for Congress, not the President, so any option that places GAO with the President wouldn’t fit.