Final answer:
The USC prohibits obligating or expending funds without proper authorization, in advance of, or in excess of, an appropriation. These rules ensure that government spending is authorized by Congress, as part of its constitutional power of the purse, to maintain fiscal control and transparency.
Step-by-step explanation:
The United States Code (USC) prohibits several actions in relation to government appropriations, which encompass:
- Obligating funds without proper authorization.
- Expending funds without proper authorization.
- Obligating or expending funds in advance of the appropriation.
- Obligating or expending funds in excess of the appropriation.
These prohibitions are in place to ensure that no money is withdrawn from the Treasury except as a consequence of appropriations made by law, which is a central element of the constitutional power of the purse granted to Congress. This maintains a system of checks and balances between Congress and the President, preventing unauthorized or excessive government spending. The requirement for regular statements and accounts of public money expenditures helps ensure transparency in government finances.
State and local governments also follow similar rules regarding the approval of spending before the release of revenues and benefit from federal expenditures. At the federal level, mechanisms like the Pay-As-You-Go (PAYGO) Act are in place to prevent increases in the federal deficit. These fiscal controls and transparency measures are fundamental aspects of federal budget management and prevent unchecked expenditures that could potentially exacerbate government debt.