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AP Government Budget Terms

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Agency debt
portion of federal debt when federal agency (which is NOT Treasury) borrows $ directly from people
Back-door authority
ability to spend money w/o going through appropriations process
Borrowing authority
permits a federal agency to incur obligations and make payments for specified purposes out of money borrowed from the Treasury. BORROWS $$ FROM GOVT. TO HELP PEOPLE/PUBLIC, $$ BORROWED FROM TREASURY
Budget Authority
to enter into obligations that will result in future outlays involving federal government funds. ENTERING INTO A CONTRACT SO THEY HAVE TO PAY IN FUTURE
Budget surplus
government budget receipts that exceed its budgets outlays for the given budget/year.
Budget year
the fiscal year of the government in which the session begins. This determines how much money can be spent during the fiscal year. LOOK AT DIAGRAM
Capital budget
divided budget with investment in capital assets and the budget surplus or deficit.BUDGET USED FOR GOODS, NOT SERVICES
CBO (Congressional Budget Office)
the budget set by Congress in a concurrent resolution on the budget. GIVES BUDGET #'s + FIGURES FOR OUTYEARS
COLA (coast of living adjustments)
cost of maintaining a certain standard of living.
concurrent resolution on the budget
the congressional budget for the United States Government for a fiscal year and revising the congressional budget for
congressional budget
appropriated funds for Congress
continuing resolution
provide temporary budget authority for federal agencies to keep them in operation when their regular appropriation bill hasn't been enacted at the beginning of the fiscal year
contract authority
authority to spend money based on a contract
controllability
The ability of Congress and the President to increase and decrease budget outlays or budget authority in the year in question
credit authority
to incur direct lean obligations or to incur primary loan guarantee commitments
current year
The fiscal year for which operations are currently underway or the budget year for which funds are currently being requested
Debt ceiling
the maximum amount of debt that a government can take on
Deferral of budget authority
an action by the executive branch that delays the obligation of budget authority beyond the point it would normally occur
Deficit
the amount by which the total budget outlays exceed total revenues in a fiscal year.
Deficit financing
outlays over receipts, financed primarily by borrowing from the public. DEFICITS PAYED FOR BY BORROWING FROM PUBLIC
Discretionary appropriations
budgetary resources provided in appropriations act.
Entitlements
Social Security benefits and veterans compensation or pensions, legislation that requires the payment of benefits to any person or unit of government that meets the eligibility requirements established by such a law.
Federal debt
consists of public debt, which occurs when the Treasury of the Federal Financing Bank (FFB) borrows money directly from the public or other funds or accounts GROSS: PUBLIC&AGENCY DEBT PUBLIC: PORTION OF FEDERAL DEBT
Fiscal year
a 12-month accounting period, begins on October 1 and ends September 30. For example, fiscal year 1995 is the year beginning October 1, 1994 and ending September 30, 1995.
Fiscal policy
federal government policies with respect to taxes, spending and debt management, intended to promote the nation's macroeconomic goals, with respect to employment, gross national product and price level stability and equilibrium in balance of payments. The budget process is a major vehicle for determining and implementing federal fiscal policy.
Impoundment
Any action or inaction that precludes the obligation or expenditure of budget authority provided by Congress
Mandatory (direct) spending
Budget authority provided by law (ex. interest)
Monetary policy
Management of money supply ex. Federal Reserve System. Aim= price stability and full employment
Off-budget entities
people who don't need to be on budget b/c their revenue comes from own organization or borrowing (ex. Social Security)
Off-setting receipts
Income from public that results from the sale of products or services(ex.timber from federal lands or entrance fees to national parks). NOT COUNTED AS RECEIPTS, JUST REDUCES SPENDING!
Outyear
any of the fiscal years that follow the budget year, through fiscal year 1995
President's budget
sent to Congress n January that estimates government receipts and outlays for the ensuing fiscal year and recommending appropriations in detail
Public debt
debt owed to the people, borrows funds directly from public
Real economic growth
the growth in the gross national product during such year WHICH INCLUDES inflation
Reconciliation
a process in which congress includes in a budget resolution "reconciliation instructions" to specific committees, directing them to report legislation that changes existing laws, usually for the purpose of decreasing spending or increasing revenues by a specified amount by a certain date.
Rescission (of budget authority)
cancellation of budget authority before the time when the authority would otherwise cease to be available for obligation CAN'T ENTER INTO OBLIGATIONS
Revenue
collections from the public arising from the government's sovereign power to tax, MONEY MADE!
Sequestration
spending equally btwn. defense and non-defense
Snapshot
The estimate of the projected deficit for the upcoming fiscal year made by the directors of the Congressional Budget Office and the Office of Management and Budget on August 15 under the provisions of the Gramm-Rudman-Hollings Act ESTIMATED DEFICIT
Subsidy
a payment or benefit made by the federal government for which there is no current charge. They are designed to support the conduct of an economic enterprise or activity, such as ship operations PAYMENT = NO CHARGE
Supplemental appropriations
An act appropriating funds in addition to those in the thirteen regular annual appropriations act. They provide additional budget authority beyond the original estimates for programs or activities. BORROWED MONEY, DOESN'T EFFECT BUDGET b/c ITS NOT IN THE BUDGET
Tax expenditure
a tax break- cutting the amount of which you are taxing people, revenue losses attributed to provisions of federal income tax laws, allows deduction from gross income
Trigger
exceeds the maximum deficit amount for the coming fiscal year by more than 10 Billion, this potential action by Congress and the president by way of a joint resolution to reduce defense and non-defense spending by uniform percentages in order to meet the maximum deficit amount. DECREASES SPENDING ACROSS THE BOARD
Trust fund
A fund consisting of assets belonging to a trust, held by the trustees for the beneficiaries MONEY USED FOR CERTAIN PURPOSE!
Unified budget
Describes the way the federal budget is currently displayed. This display includes revenues and spending for all regular federal programs and trust funds except Social Security
Appropriations Act (13)
generally provides authorization for federal agencies to incur obligations and to make payments for specified purposes. It generally follows enactment of authorizing legislation.
Outlay
Disbursements by the federal Treasury in the form of checks or cash
Budget (Receipts)
Collections from public and from payments by participants in certain voluntary federal social insurance programs.
OMB,office of management and budgeting
office that assists president in overseeing the preparation of federal budget
on-budget entity
transaction included in the budget
nondiscretionary spending
...
means-tested entitlements
money one is
entitled to only if one meets certain qualifications
GDP, Gross Domestic Product
total of good and services produced every year, money produced in US in a year
Earmarked reciepts
are monies dedicated to
specific purpose only
current dollar
money from certain year
constant dollar
money used to try and compare taxes overtime
base-line projections
a 5 year projection used for economic purposes