Federal Budget Glossary

 

Appropriations Bill: A bill which provides the authority needed by the government to spend U.S. Treasury funds. There are 13 annual appropriations bills. There are bills for all the major departments, e.g. State, Treasury, Justice, Commerce, etc. Together they fund the entire federal government. These 13 bills must all be enacted prior to the start of a new fiscal year, designated as October 1. Failure to meet this deadline results in a shut-down of the government unless Congress passes "continuing appropriations" - temporary extensions at current funding levels.

 

budget: A budget is a plan for spending available money during a certain period of time.

 

balanced budget: A balanced budget occurs when the total sum of money a government collects in a year is equal to the amount it spends.

 

budget resolution: A resolution containing the annual decision made by Congress to set spending and revenue levels for the year to come. The Budget Resolution provides a voluntary framework within which Congress agrees to limit the subsequent money bills. The Budget Resolution may also instruct committees to change current law in order to save money, a process called "reconciliation."

 

deficit: A budget deficit occurs when the government spends more money than it takes in.

 

excise taxes: Excise taxes apply to various products, including alcohol, tobacco, and transportation fuels.

 

Congress: The legislative branch of the Federal Government. Congress consists of the Senate and the House of Representatives.

 

Fiscal Year: The fiscal year is the Government's accounting period. It begins October 1 and ends on September 30.

 

revenue: This is another word for receipt. Revenues include the collections that result from Government activity, such as taxes.

 

surplus: A surplus occurs when expenditures are less than the actual intake of revenues during the same period.