[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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