Diplomacy & Politics Glossary

An appropriations bill authorizes government spending for specific programs or departments.

A provision added to an appropriations bill that may be unrelated to the main purpose of the bill.

A federal grant provided to states or localities for a specific purpose with strict limitations on how the funds may be spent.

Funds provided by a higher level of government to a lower level with specific conditions on how the money must be used.

A legislative limit on the amount of national debt that the government is authorized to borrow to meet its obligations.

A debt deficit occurs when government expenditures exceed revenues, increasing national debt.

The amount by which government expenditures exceed its revenues in a fiscal year.

Government spending on programs and policies that are decided through annual appropriations processes rather than mandated by law.

The annual budget plan submitted by the executive branch outlining government spending priorities and revenue estimates.

The degree to which subnational governments can independently generate revenue and make spending decisions without central government control.

The process of allocating financial resources and taxing authority from central to subnational governments.

A quantitative measure assessing the degree to which fiscal responsibilities and revenues are devolved from central to subnational governments.

A system of financial transfers designed to reduce disparities in fiscal capacity among different regions or governments.

The financial relations and distribution of taxing and spending powers among different levels of government.

Different forms of federal grants include categorical grants, block grants, and formula grants, each with varying levels of restrictions on how funds are spent. These grants shape intergovernmental fiscal relations and policy priorities.

Government decisions about taxation and spending to influence the economy.

The fiscal policy multiplier measures how government spending impacts overall economic output and growth.

The capacity of a government to provide additional budgetary resources without compromising fiscal sustainability.

Incremental budgeting adjusts previous budget amounts slightly for the new fiscal period instead of creating budgets from scratch.

Funds provided by one level of government, usually federal, to lower levels such as states or municipalities to support specific programs or general purposes.

Efforts to increase transparency and public participation in the government budgeting process.

The legislature's constitutional authority to control government spending and taxation.

The study and management of government revenue, expenditure, and debt.

A budgeting method where every expense must be justified for each new period, starting from zero.