![]() | The examples and perspective in this article may not represent a worldwide view of the subject.(January 2021) |
A rainy day or rainy day fund is a reserved amount of money to be used in times when regular income is disrupted or decreased in order for typical operations to continue. In the United States, the term is usually used to apply to the funds maintained by most U.S. states to help deal with budget shortfalls in years where revenues do not match expenditures. This is critical to the operations of most state and local governments, which are legally prohibited (either by a state constitution or state laws governing local governments) to take on debt other than for specific purposes (and usually limited to a specific level) or to spend in excess of cash on hand and expected revenue, meaning that services would have to be cut in the absence of reserve funds. [1]
New York State Comptroller Thomas DiNapoli recommended in March 2010 that the state require that one half of surpluses be deposited into the rainy day fund. [2] The Massachusetts rainy day fund has been the focus of tussles between the Governor of Massachusetts and the Massachusetts General Court. [3] [4] Section 49-g of the Texas Constitution provides for that state's fund (officially called the "Economic Stabilization Fund") and caps the amount of the fund at $28.5 billion, due to Texas' rapid economic growth, the actual fund balance has neared the cap.
Some research suggests developing a national rainy day fund for states might improve state credit ratings and reduce capital financing costs for states. [5] [6]
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorised that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target inflation and to increase employment. In modern economies, inflation is conventionally considered "healthy" in the range of 2%–3%. Additionally, it is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilise the economy over the course of the business cycle.
An appropriation bill, also known as supply bill or spending bill, is a proposed law that authorizes the expenditure of government funds. It is a bill that sets money aside for specific spending. In some democracies, approval of the legislature is necessary for the government to spend money.
In many states with political systems derived from the Westminster system, a consolidated fund or consolidated revenue fund is the main bank account of the government. General taxation is taxation paid into the consolidated fund, and general spending is paid out of the consolidated fund.
The United States budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies. The government primarily spends on healthcare, retirement, and defense programs. The non-partisan Congressional Budget Office provides extensive analysis of the budget and its economic effects. CBO estimated in February 2024 that Federal debt held by the public is projected to rise from 99 percent of GDP in 2024 to 116 percent in 2034 and would continue to grow if current laws generally remained unchanged. Over that period, the growth of interest costs and mandatory spending outpaces the growth of revenues and the economy, driving up debt. Those factors persist beyond 2034, pushing federal debt higher still, to 172 percent of GDP in 2054.
Fund accounting is an accounting system for recording resources whose use has been limited by the donor, grant authority, governing agency, or other individuals or organisations or by law. It emphasizes accountability rather than profitability, and is used by nonprofit organizations and by governments. In this method, a fund consists of a self-balancing set of accounts and each are reported as either unrestricted, temporarily restricted or permanently restricted based on the provider-imposed restrictions.
Oregon ballot measure 48 was one of two unsuccessful ballot measures sponsored by the Taxpayers Association of Oregon (TAO) on the November 7, 2006 general election ballot. Measure 48 was an initiated constitutional amendment ballot measure. Oregon statute currently limits state appropriations to 8% of projected personal income in Oregon. If Governor declares emergency, legislature may exceed current statutory appropriations limit by 60% vote of each house. This measure would have added a constitutional provision limiting any increase in state spending from one biennium to next biennium to the percentage increase in state population, plus inflation, over previous two years. Certain exceptions to limit, including spending of: federal, donated funds; proceeds from selling certain bonds, real property; money to fund emergency funds; money to fund tax, "kicker," other refunds were included in the provisions of the measure. It also would have provided that spending limit may be exceeded by amount approved by two-thirds of each house of legislature and approved by majority of voters voting in general election.
The Stabilization fund of the Russian Federation was a sovereign wealth fund established based on a resolution of the Government of Russia on 1 January 2004, as a part of the federal budget to balance the federal budget at the time of when oil price falls below a cut-off price, currently set at US$27 per barrel.
The Ministry of Finance of Chile is the cabinet-level administrative office in charge of managing the financial affairs, fiscal policy, and capital markets of Chile; planning, directing, coordinating, executing, controlling and informing all financial policies formulated by the President of Chile.
The Russian National Wealth Fund is Russia's sovereign wealth fund. It was created after the Stabilization Fund of the Russian Federation was split into two separate investment funds on 30 January 2008.
A budget freeze in the USA is when a budget for an aspect of government or business is fixed- or frozen- at a specific level. One can be applied in a business to increase profits as well as in a government, often to reduce taxes.
The Budget of the State of Oklahoma is the governor's proposal to the Oklahoma Legislature which recommends funding levels to operate the state government for the next fiscal year, beginning July 1. Legislative decisions are governed by rules and legislation regarding the state budget process.
The Oklahoma State Budget for Fiscal Year 2011, is a spending request by Governor Brad Henry to fund government operations for July 1, 2010–June 30, 2011. Governor Henry and legislative leader approved the budget in May 2010. This was Governor Henry's eight and final budget submitted as governor.
Film production incentives are tax incentives offered on a state-by-state basis throughout the United States to encourage in-state film production. Since the 1990s, states have offered increasingly competitive incentives to lure productions away from other states. The structure, type, and size of the incentives vary from state to state. Many include tax credits and exemptions, and other incentive packages include cash grants, fee-free locations, or other perks.
The United States federal budget consists of mandatory expenditures, discretionary spending for defense, Cabinet departments and agencies, and interest payments on debt. This is currently over half of U.S. government spending, the remainder coming from state and local governments.
In 2011, ongoing political debate in the United States Congress about the appropriate level of government spending and its effect on the national debt and deficit reached a crisis centered on raising the debt ceiling, leading to the passage of the Budget Control Act of 2011.
The Budget Control Act of 2011 is a federal statute enacted by the 112th United States Congress and signed into law by US President Barack Obama on August 2, 2011. The Act brought conclusion to the 2011 US debt-ceiling crisis.
Deficit reduction in the United States refers to taxation, spending, and economic policy debates and proposals designed to reduce the federal government budget deficit. Government agencies including the Government Accountability Office (GAO), Congressional Budget Office (CBO), the Office of Management and Budget (OMB), and the U.S. Treasury Department have reported that the federal government is facing a series of important long-run financing challenges, mainly driven by an aging population, rising healthcare costs per person, and rising interest payments on the national debt.
The federal budget of Russia is the leading element of the budget system of Russia. It is a major state financial plan for the fiscal year, which has the force of law after its approval by the Russian parliament and signed into law by the President of Russia.
Government spending in the United States is the spending of the federal government of the United States and the spending of its state and local governments.