Budget Vocab

Question 1

Budget

Answer 1

An estimate of appropriations for the federal government in one fiscal year

Question 2

Deficit

Answer 2

A lack of money that arises when the federal government spends more than it makes

Question 3

Expenditures

Answer 3

Money that the government spends

Question 4

Revenues

Answer 4

Money that the government makes

Question 5

Income Tax

Answer 5

The government takes a percentage of people’s income to raise money

Question 6

Sixteenth Amendment

Answer 6

An amendment that allows Congress to impose Federal income tax

Question 7

National Debt

Answer 7

Money borrowed by the federal government that needs to be payed back

Question 8

Tax Expenditures

Answer 8

Exceptions to regular income tax policies due to specific taxpayer situations — for charities, churches, homeowners, etc.

Question 9

Social Security Act

Answer 9

An act that provides funds to the elderly, providing money during retirement

Question 10

Medicare

Answer 10

A program under social security that provides health insurance for the elderly

Question 11

Incrementalism

Answer 11

The budgeting process of looking at the previous year’s budget to determine the budget of the current year, but often increasing the amount.

Question 12

Uncontrollable Expenditures

Answer 12

Spending that the government is legally required to do because of existing programs like social security.

Question 13

Entitlements

Answer 13

Eligibility rules that Congress writes for people receiving uncontrollable expenditures, like the retirement age

Question 14

House Ways and Means Committee

Answer 14

House committee that determines taxation/writes tax codes

Question 15

Senate Finance Committee

Answer 15

Senate Committee that oversees finance and budgetary concerns, but cannot control taxes

Question 16

Office of Management and Budget (OMB)

Answer 16

A budget office in the executive branch that the president has little involvement in

Question 17

Appropriations Committee

Answer 17

In both houses, the committee that decides government spending and appropriation policy

Question 18

Budget Resolution

Answer 18

An agreement that needs to be made by both houses at the end of the fiscal year, sets the budget for next year.

Question 19

Reconciliation

Answer 19

Adjustments to the budget including program authorization and tax adjustments, essentially fine-tuning budget before resolution.

Question 20

Appropriations Bill

Answer 20

A bill created to fund programs and government projects, to be passed before the next fiscal year.

Question 21

Continuing Resolution

Answer 21

When Congress isn’t able to pass a resolution, they pass this, which allows agencies to spend on the terms of last year’s budget in the meantime

Question 22

Government Shutdown

Answer 22

When a budget isn’t able to be passed in time, the government shuts down because of a lack of funds, and employees are layed off

Question 23

Omnibus Bill

Answer 23

A bill composed of many smaller bills, in the case of budget usually appropriations bills