Refers to the method of financing capital projects. The Pay-As-You-Go Capital projects are totally financed by revenues received during the fiscal year the project is initiated. No borrowing or issuing of bonds is undertaken.
This term refers to requirements in law that result in a sequester if the estimated combined result of legislation affecting direct spending or receipts is an increase in the deficit for a fiscal year.
A procedure set forth in the Deficit Control Act that ensures that all legislation affecting direct spending or receipts is budget neutral in each fiscal year. The Office of Management and Budget and CBO estimate the five-year budgetary effects of all such legislation enacted before September 31, 2002. If the estimated budgetary effects in the budget year would increase the deficit or reduce the surplus for that year, a PAYGO sequestration--or cancellation of budgetary resources available for direct spending programs--is triggered. See direct spending, fiscal year, and sequestration.
A provision of the Budget Enforcement Act of 1990 which requires that any entitlement or tax proposal include provisions for financing. New entitlement or tax proposals must be paid for by raising new revenue or cutting existing entitlement programs. Thus, changes in entitlement programs must be deficit neutral.
Refers to the method of financing capital projects. The Pay-As-You-Go Capital projects are funded from annual appropriations as part of the adopted operating budget.
Set forth by the BEA, "pay-as-you-go'' refers to requirements that new spending proposals on entitlements or tax cuts must be offset by cuts in other entitlements or by other tax increases, to ensure that the deficit does not rise (see BEA).
A procedure required in the Budget Enforcement Act of 1990 to ensure that, for fiscal years 1991 through 1995, legislation affecting direct spending and receipts did not increase the deficit. The pay-as-you-go process was extended through fiscal year 1998 by the Omnibus Budget Reconciliation Act of 1993. Pay-as-you-go is enforced through Congressional rules and sequestration procedures.
A procedure that tracks the five-year budgetary effects of all enacted legislation affecting direct spending or receipts and that triggers a sequestration if the legislation would increase the deficit or reduce the surplus in a fiscal year. The procedure was established in the Budget Enforcement Act of 1990 and was extended in the Balanced Budget Act of 1997 for laws enacted through fiscal year 2002. See direct spending, sequestration, deficit, and surplus.