Why is Congress considered a key stakeholder in defense financial management?

Congress plays a pivotal role in defense financial management primarily because it provides funding and oversight for defense budgets. The authority vested in Congress allows it to allocate financial resources necessary for various defense programs, which directly impacts national security and military readiness.

Additionally, through its budgetary powers, Congress reviews and approves defense budget proposals submitted by the Department of Defense and other defense agencies. This oversight ensures that funds are spent efficiently and align with national security priorities. Congress can also make alterations to the proposed budgets, influencing how financial resources are distributed among different programs and initiatives.

Furthermore, Congress conducts hearings and holds inquiries related to defense spending, ensuring transparency and accountability. This legislative oversight holds the executive branch accountable for the effective management of defense resources, thereby reinforcing its importance as a key stakeholder in defense financial management.