Commitments made by federal agencies to pay out money as distinct from the actual payments, which are "outlays." Generally, obligations are incurred after the enactment of budget authority. However, since budget authority in many highway programs is in the form of contract authority, obligations in these cases are permitted to be incurred immediately after apportionment or allocation. The obligations are for the federal share of the estimated full cost of each project at the time it is approved regardless of when the actual payments are made or the expected time of project completion.

Obligations represent the second step in the spending process following the Programming phase. An obligation is the formal commitment of a specified amount of funding for a particular project. Technically speaking, it is an obligation of the FHWA to reimburse a State for costs incurred. It represents a high level of commitment on the part of both the State DOT and the FHWA to fund a project. Obligations are typically made when a project or discrete project phase is ready to have consultants or contractors begin billable work.

are contracts that are filed with the Comptroller's Office and reserve a portion of the agency's spending authority.

Commitments made by federal agencies to pay out money, as distinct from the actual payments, which are "outlays." Generally, obligations are incurred after the enactment of budget authority. The obligations are for the federal share of the estimated full cost of each project at the time it is approved, regardless of when the actual payments are made or the expected time of project completion. Also: A federal budgetary term that refers to a binding agreement that will result in an outlay; an agreement by the federal government to pay for goods or services immediately or at some future time when the goods or services are delivered. Also known as a "commitment." (APTA)

The same as liabilities, that is, these are future sacrifices.

the amounts of orders placed, contracts and grants/subgrants awarded, goods and services received and similar transactions during a given period that will require payment by the grantee/recipient during the same or a future period.

The things you have to pay for consistently each month, excluding housing costs. Obligations include things like car loans, credit card bills, student loans, and alimony or child support.