177k views
2 votes
When a purchase order or contract is issued as authorized by an appropriation, the government may recognize this commitment as a(n)

User GregK
by
7.7k points

1 Answer

2 votes

Final answer:

A government commitment in the form of a purchase order or contract that has been authorized by an appropriation is recognized as a budgetary obligation. This ties into budget management and is dependent on the availability of appropriated funds.

Step-by-step explanation:

When a purchase order or contract is issued and authorized by an appropriation, the government may recognize this commitment as a budgetary obligation. This represents a specific promise to pay for the products or services ordered. Government agencies operate on a budget that is passed by the legislature. This sum of money granted by an appropriation is intended for a specific purpose and is part of the management and budget relating to budgetary, administrative, or legislative proposals.

According to the guidelines set forth, such an order should be implemented in accordance with applicable law and is contingent upon the availability of appropriations. It's also important to note that the order does not create any rights or benefits enforceable at law or in equity by any party against the United States or its agents.

User Rick Schummer
by
7.7k points