Federal Budget Terms are the terms used to describe various aspects of the budget report. There are several terms and definitions which one should be aware of to comprehend a budget report and the dynamics of the budget.
The Terms
The terms referred to in the above paragraph are:
- Accounts- It is an important aspect of the budget. Every budgetary transaction is recorded in the account.
- Appropriation Account- This is permitted under the appropriation act, the appropriation account may typically include many activities, it is subjected to restrictions as well.
Types of Accounts in the President's Budget
The Accounts under the Federal Budget are classified broadly as either the receipt or expenditure on the part of the government. Two types of funds are there which determine the types of accounts. The funds are:
- Federal Fund Accounts- It records the money spent and earned by the government other than those for the trust funds.
Federal Fund Accounts could be divided into four categories. They are:
- General Fund Accounts- These accounts hold the whole of the Federal money and this money cannot be parted with. There are two categories inside the general account. They are:
- General Fund Receipt Account- The receipt account contains the records of those collections which are not assigned to any other purpose.
- General Fund Expenditure Account- The appropriation account which records the spending of money for government activities.
- Intra Governmental Fund Accounts- It holds records regarding the expenditure that takes place due to the transaction between the federal authorities. Two types of accounts under this head are:
- Intra governmental Account
- Management Fund Account
- Public Enterprise Revolving Fund Account- This account holds the record about the transaction that takes place involving the public and business operations. The money earned in turn is used by the government.
- Special Fund Accounts- This account is assigned by law to a specific purpose.
The other account terms are:
- Trust Fund Accounts
- Clearing Accounts
- Deposit Fund Accounts
- Foreign Currency Fund Accounts
- Suspense Accounts
- Transfer Appropriation Accounts
- Accounts Payable
- Accounts Receivable
- Accrual Accounts
- Balanced Budget
- Budget Receipts
- Budget Resolution
- Capital Budget
- Closed Account