The act allows Congress to legally push through budget cuts. The Office of Management and Budget and the Congressional Budget Office will highlight where cuts can be made. Their report is sent to the president. The cuts will be carried out unless Congress passes a law to make the cuts unnecessary. Despite this power, Congress has sought to avoid an embarrassing fight with the president over the budget simply because their task would be to cut the budget in some area.
Any area is likely to affect people and budget cuts can be politically and electorally unsound.
Likewise, the president can gain momentum over Congress by blaming cuts on them and not him. In his proposed budget, x million dollars can be put forward for social security payments. If this is cut by Congress, as it is an easy target, the president can pass the blame for this on Congress especially if Congress is dominated by the opposition party. If it is rejected by Congress, they get the blame for refusing to help those in need.