Preface The federal budget is the principal policy statement of the President's fiscal priorities and proposals for allocating expenditures and taxes. The budget also functions as a framework and reference point for congressional budgetary actions. Because of the budget's economic, social, and political importance and its role in providing the information needed to assess program efficiency and effectiveness, an understanding of budget concepts is essential. Budgetary terms and definitions must also be understood in order to consider and implement changes in the budgetary or financial management process. This exposure draft of the revised Glossary of Terms Used in the Federal Budget Process proposes to replace the third edition of the Glossary, issued in March 1981. It fulfills part of GAO's statutory responsibility (31 U.S.C. 1112) to publish standard terminology, definitions, classifications, and codes for federal fiscal, budgetary, and program-related information. This Glossary is a basic reference document for the Congress, federal agencies, and others interested in the federal budget-making process. Like previous editions, this revision emphasizes budget terms, but relevant economic and accounting terms are also defined to help the user appreciate the dynamics of the budget process. It also distinguishes between any differences in budgetary and nonbudgetary meanings of terms. For this edition we have reviewed all terms in the 1981 edition and made additions, revisions, or deletions. New material includes a discussion of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended (2 U.S.C. 900-922), more commonly referred to as Gramm-Rudman-Hollings. We have identified terms included in the Budget Enforcement Act of 1990, the most recent amendment to GrammRudman-Hollings. The Glossary is by no means an exhaustive list of terms related to the budget. We decided to include only those commonly used terms that are most significant in the congressional and executive budget processes. Executive, legislative, and other budget experts participated in the selections and definitions of the Glossary terms. While every effort was made to resolve differences, the final selections and definitions were made by GAO. GAO welcomes recommendations on changes to this exposure draft. Comments may be sent to Paul Posner, Director, Budget Issues, Accounting and Financial Management Division, U.S. General Accounting Office, 441 G Street NW, Room 6820, Washington, D.C. 20548. Domed Chopn Donald H. Chapin Assistant Comptroller General Accounting and Financial Management Division |