A bill to amend the Congressional Budget Act of 1974 and the Budget and Accounting Act, 1921, to provide that (after a 3-year phase-in period) Federal expenditures shall not exceed Federal revenues, except in time of war or economic necessity declared by the Congress.

Amends the Congressional Budget Act of 1974 to prohibit the enactment of legislation which would result in a level of Federal budget outlays in excess of revenues in any fiscal year. States that such prohibition shall not apply during a period of declared war or economic necessity.

Permits budget deficits in the two fiscal years following enactment amounting to five percent of the Federal revenues for the first such year and two percent of the revenues for the second such year.

Directs that the preparation, consideration, and adoption of the concurrent resolutions on the budget must conform with the requirements of this Act.

Amends the Budget and Accounting Act, 1921, to require the President to transmit a budget to the Congress which complies with such requirements. Directs the President to take action (by placing funds in reserve, apportionment of funds, or otherwise) necessary to insure such compliance, notwithstanding obligational authority or appropriations made within the executive branch.