Bureau Of The Budget

   Established in 1921 under the Budget and Accounting Act, the Bureau of the Budget was headed by the director of the budget with the primary function of preparing the annual executive budget. The bureau was also responsible for the supervision of the administrative management of executive agencies, the improvement of federal statistical services, and the promotion of economic and efficient government running. President Franklin D. Roosevelt reinvigorated the bureau in 1933 and appointed Lewis Douglas, a former Democratic congressman, as director. Roosevelt initially aimed to reduce expenditure and balance the budget, but as the New Deal developed, the policy was abandoned, and Douglas resigned in 1934, to be replaced by Daniel W. Bell from the Treasury Department. By 1938, the bureau was effectively reviewing the financial implications of all legislation, and in 1939 it was transferred from the Treasury to the Executive Office. Harold D. Smith, formerly director of the Michigan state budget, was appointed director. During the war, the bureau grew in size and importance, reflecting the increase of its role in the federal government and federal spending.