What is the separation of powers between the legislative branch and the executive branch regarding the budget? -congress holds “the power of the purse” and the president initiates the budget process by submitting a budget plan. -the president holds “the power of the purse,” and congress initiates the budget process by submitting a budget plan. -congress and the president work together through the budget-making and passing process. -congress decides how much money the federal government needs each year, and the president divides it up among the agencies.