1. Application of instructions.

The instructions contained herein apply in full to the preparation of annual budgets for all agencies of the Government.

The instructions apply until further notice. The following phrases are therefore used in lieu of naming specific years:

Budget year-the fiscal year for which estimates are submitted.

Current year-the fiscal year immediately preceding the budget year.

Past year the fiscal year immediately preceding the current year.

Budget submissions must be in accordance with these instructions unless a specific exception is made in writing by the Bureau of the Budget.

2. Time for submittal of budget estimates.

As early as possible in September, and in no event later than September 30, budget estimates of departments and agencies in the executive branch shall be submitted to the Bureau of the Budget for the consideration of the President. The estimates of the legislative branch, the judiciary, and the District of Columbia shall be submitted on or before October 15 of each year. This date applies not only to the formal estimates, but to the supporting schedules, justifications, the statement of legislative program, and other material required in the budget submission.

Requests for exceptions to these instructions should be submitted to the Bureau of the Budget by July 31.

Advance submission, in the form of a letter or memorandum, is required by July 31 on proposals of the following types:

(a) Changes in the appropriation pattern and other "transfers in the estimates" (section 37).

(b) Changes in activity classifications for the program and financing schedules (sections 41, 44). (c) Changes in program classifications for business-type budget statements (section 56).

(d) Proposed format of schedules for new costtype and business-type statements (sections 56, 76). Proposed changes in the wording of appropriation language should be discussed with Bureau of the Budget representatives as soon as possible after the passage of the current year's appropriation act (section 33).

3. General policies on the estimates for the budget year.

Appropriation requests and detailed schedules for the budget year will conform to known policies of

the President with respect to the specific programs and estimates involved. All estimates must be completely justified with respect to program objectives and plans and the derivation of the proposed appropriation (section 63). The following general policies will apply with respect to all programs:

(a) The regular annual estimates shall be complete as to anticipated requirements on the basis of statutes as they stand at the date of the budget submission. They must cover all authorized activities which it is proposed to carry on in the budget year, and the funds necessary to meet specific financial liabilities imposed by law. No supplemental estimate of appropriation or upward amendment of the estimates will be considered later unless it is due (1) to circumstances not foreseeable at the time the annual estimates are submitted or (2) to subsequent action by Congress.

(b) No new contract authorizations will be proposed for the budget year. Appropriations to liquidate presently outstanding contract authorizations will be only the amounts needed for expenditure in the budget year.

(c) If, in addition to the regular appropriation requests, it appears probable that proposals for new legislation or extension of expiring legislation may require a further request, a tentative forecast of the supplemental estimate will be set forth in a schedule of budget authorizations, expenditures and balances (sections 51-52), and will be explained in the statement of legislative program (section 86). Such proposed supplementals will not appear on language sheets or program and financing schedules, however.

(d) Estimates shall be based upon the most economical and efficient manner of carrying on the work of each agency. Intensive efforts must be made continuously to see that a greater value is obtained for each dollar of Government cost. Full account shall be taken of savings possible as a result of actual or projected improvements in work methods and administrative procedures.

(e) Estimates for personal services will include provision for all compensable days occurring in the year. They will generally be based upon a 40-hour workweek. The estimates will not include increases in appropriations or other funds for premium pay, except for extension of the regular workweek which must be specifically and fully justified. Overtime and other premium pay should be estimated as accurately as possible, even though additional costs (other than for the extension of the regular workweek) must be absorbed.