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This report reviews the Congressional Budget and Impoundment Control Act of 1974 and assess its implications to Defense Planning Programming and Budgeting. The new Congressional Organizations, the new budget timetable, and other key provisions provided for by the Act are discussed and analyzed in terms of its impending implementation. Experience gained during the recent trial run implementation is used to establish relationships with the Executive Branch, and in particular, the Department of Defense. The analysis of the Act identified ten potential problem areas which will require the continued attention of Defense Officials in the years to come. Each problem area is discussed, and further areas of study are recommended. (Author).