T HE formulation of an adequate fiscal policy depends not alone on analytical method. The raw materials of analysis are equally necessary. In the case of federal fiscal policy the budget is the most important of these raw materials; the formulation and administration of fiscal policy requires that the budget be presented in a form which lends itself to economic analysis. The Budget of the United States Government for ... 1948 is an important forward step in refining the raw materials of fiscal policy. For the first time the budget presents a uniform, functional classification of expenditures. The expenditure categories in previous budgets were never unambiguous. Some expenditures were classified by agencies; others were related to the economic character of the outlay. This year the ambiguities are removed and federal activities are classified in accordance with the basic