    [Analytical Perspectives]
    [Other Technical Presentations]
    [19. Relationship of Budget Authority to Outlays]
    [From the U.S. Government Printing Office, www.gpo.gov]

      The Congress must provide budget authority, which is generally in the
    form of appropriations, before Federal agencies can obligate the
    Government to make outlays. When Congress fails to complete action on
    one or more of the regular annual appropriation bills before the fiscal
    year begins, budget authority may be made available on a temporary basis
    through continuing resolutions. Continuing resolutions make budget
    authority available for limited periods of time, generally at rates
    related through some formula to the rate provided in the previous year's
    appropriation.
      Some new budget authority is available through permanent
    appropriations under existing law. This consists mainly of budget
    authority for trust funds, which for most trust funds is automatically
    appropriated under existing law; interest on the public debt, for which
    budget authority is automatically provided under a permanent
    appropriation enacted in 1847; and the authority to spend offsetting
    collections credited to appropriation or fund accounts. Budget authority
    for the medicare, railroad retirement, and unemployment insurance trust
    funds was changed by the Budget Enforcement Act of 1990, so that it
    equals estimated obligations of the funds rather than the funds'
    receipts. Conforming changes were made administratively in 1991 for most
    other trust funds and special funds subject to obligation limits or
    benefit formulas, including the social security and the military and
    civil service retirement trust funds.
      The remaining new budget authority is normally made available annually
    through the appropriations process.
      Not all of the new budget authority for 1997 will be obligated or
    spent in that year:\1\
      \1\This subject is also discussed in a separate OMB report, ``Balances
    of Budget Authority,'' which can be purchased from the National
    Technical Information Service shortly after the budget is transmitted.
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