Chapter 8 – Budgeting Process

8.1 Budget & Appropriations Bills

Again, a budget is a detailed plan that the government creates each year to manage its money. It shows how much money the government expects to receive and how it plans to spend it. The budget includes:

  • Revenue Projections – These are estimates of the money the government expects to collect from taxes, fees, and other sources.
  • Expenditure Proposals – These are the plans for spending money on different programs and services, like education, healthcare, and defense.

The budget acts as a guide for how the government will handle its finances over a specific period, usually one year.   

An appropriations bill is a type of law that allows the government to spend money. Each appropriations bill sets aside a certain amount of money for specific government activities and programs. These bills are necessary to:

  • Allocate Funds – Appropriations bills specify exactly how much money each government agency or program will receive.
  • Authorize Spending – These bills give legal permission for the government to spend the money as planned.

Appropriations bills must be passed by both houses of the legislature (like Congress) and signed by the executive (like the President) to become law.

In short, while the budget provides the plan, the appropriations bills provide the legal means to make that plan a reality. Multiple appropriations bills are needed to cover all the spending areas outlined in the budget, ensuring that every part of the government gets the money it needs to operate.

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An Ohioan’s Guide to State & Local Government by R. Clayton Wukich is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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