Dollar amounts that a governmental unit may be legally required to meet through its resources, including actual liabilities and unliquidated encumbrances. An obligation exists when goods or services are delivered. The State is required to pay for such goods or services. Obligations--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 Federal share of obligations is 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.