Question

Please define the following tool for changing the budget: holdbacks.

A) The executive delays spending money that has been appropriated for a specific project or program.
B) Withdrawals of previously granted legal authorization to spend money. (The reason why an elected official may refuse to spend allocated money in the budget is to reduce expenditures in order to have an excuse to cut taxes. If expenditures are kept low, then revenues can be low also. C) A budget law that adds money to some existing function or new purpose during the year.
D) A fixed and small percentage of the approved budget of all or nearly all agencies.
E) Take money from one appropriation account for a designated purpose and spend it in a different fund or appropriation account.
F) Transfers that occur between projects or programs, typically within the same administrative unit, department, or agency.

Answer 1

Holdbacks are when the executive delays spending of allocated funds, a strategy to adjust budget expenditures. Budget disagreements between Congress and the president can lead to a government shutdown, resolved by a continuing resolution. Control over deficit spending includes measures like the PAYGO Act, requiring offsetting budget costs.

Step-by-step explanation:

Holdbacks refer to the tool for changing the budget where the executive delays spending money that has been appropriated for a specific project or program. This is often done to adjust expenditures and manage overall spending within an organization or government. Legislatures use budgeting as a tool for policy-making, allocating more money to agencies that align with their policy goals, while potentially cutting budgets for those that do not. If a budget isn't agreed upon by Congress and the president, a continuing resolution must be passed to avoid a government shutdown, as seen in historical events such as the 2013 dispute over health reform. Deficit spending is when expenses exceed revenues, which is controlled by legislative measures like the PAYGO Act, ensuring any increase in the deficit must be offset by equivalent deficit reduction methods. The budget proposal starts with the president but must be approved and modified by Congress, which 'holds the purse strings', with discretionary spending subject to annual review and modification based on the needs of programs and departments. Governors in states also have a role, introducing budget proposals that reflect funding priorities, which can include addressing a surplus with various fiscal strategies.