Final answer:
The term refers to the bona fide need rule, which stipulates that appropriations must be used to fulfill needs that arise during the relevant fiscal year. This ensures fiscal responsibility and adherence to the budget. The constitutional appropriating process and mechanisms like the PAYGO Act help control deficit spending and prevent unauthorized government expenditures.
Step-by-step explanation:
The statement pertains to the bona fide need rule, which is a principle in federal fiscal law that governs the timing of the federal government's use of appropriations. An appropriation must be used to fulfill a genuine or bona fide need arising in or continuing into the fiscal year for which the appropriation was made. This helps ensure that federal spending aligns with the specific fiscal year's intended purposes, and prevents the carryover of funds for needs that arise in subsequent years unless specifically authorized by law.
According to the Constitution, no money can be spent from the Treasury without an appropriation made by law. This constitutional requirement underlines the importance of the appropriations process in managing federal finances and ensuring that all government expenditures are authorized and accounted for. Furthermore, the Constitution requires the comptroller to certify that any appropriations made by the legislature are within available revenues, underscoring the need for fiscal responsibility.
When the government cannot agree on a budget, a continuing resolution must be passed to provide temporary funding, or else a government shutdown may occur. These budgetary controls, including the PAYGO Act, are designed to mitigate the risk of increased federal deficits through various deficit spending constraints and procedures.