Fiscal Policy Definitions
Easy-to-understand definitions of the most commonly used terms in fiscal policy and the government budgeting process.
Base Budget
A definition of the Base Budget, which is the basic budget needed to keep a department in readiness year after year.
A definition of the Base Budget, which is the basic budget needed to keep a department in readiness year after year.
Budget Deficit
When a government spends more than it makes.
When a government spends more than it makes.
Discretionary Spending
The part of the U.S. budget that is negotiated between Congress and the President each year.
The part of the U.S. budget that is negotiated between Congress and the President each year.
Fiscal Policy
How the government sets its budget process.
How the government sets its budget process.
Fiscal Year
A definition of the U.S. Government's Fiscal Year.
A definition of the U.S. Government's Fiscal Year.
Mandatory Spending
The portion of the U.S. Budget that is obligated to cover entitlement spending, including Social Security, Medicare and Medicaid.
The portion of the U.S. Budget that is obligated to cover entitlement spending, including Social Security, Medicare and Medicaid.
Off-Budget
A definition of off-budget revenue, which is primarily "borrowed" from the Social Security Trust Fund.
A definition of off-budget revenue, which is primarily "borrowed" from the Social Security Trust Fund.
Unfunded Mandate
When the government requires another agency or government to provide a service, but there is not budget for it.
When the government requires another agency or government to provide a service, but there is not budget for it.