The federal budget is central to Congress’s ability to exercise its power of the purse . Federal budget decisions also express Congress’s priorities and reinforce Congress’s influence on federal policies. Making budgetary decisions for the federal government is a complex process and requires balancing competing goals. Recent economic turmoil has strained the federal budget as a result of declining revenues and increasing spending levels. As the economic recovery continues, the budget process will allow the President and Congress to negotiate priorities and refine spending plans. This book examines issues for the FY 2013 federal budget with a focus on the rising costs of entitlement programs, significant spending on overseas military operations, and low revenue levels. While the economy is growing again, unemployment remains elevated and government spending on automatic stabilisers , such as unemployment insurance and income security programs, remains higher than historical averages.