CGFM Federal Budget Process and Execution 3

Question 1

What is the 'current services baseline' in federal budgeting?

Accepted Answer

A projection of future spending needed to continue current programs at current service levels

Answer

The current services baseline projects future spending levels needed to maintain existing programs under current law, adjusting for inflation and caseload changes.

Question 2

Which type of appropriation does NOT expire at the end of the fiscal year?

Accepted Answer

No-year appropriation

Answer

A no-year appropriation remains available for obligation indefinitely until the funds are expended or the appropriation is rescinded.

Question 3

What is a 'rescission' in federal budgeting?

Accepted Answer

A legislative cancellation of previously enacted budget authority

Answer

A rescission is a legislative action that permanently cancels previously enacted budget authority before the funds are obligated.

Question 4

What is the 'pay-as-you-go' (PAYGO) rule in federal budgeting?

Accepted Answer

Requiring that new mandatory spending or tax cuts be offset by spending cuts or tax increases

Answer

PAYGO requires that legislation increasing mandatory spending or cutting taxes be offset by equivalent mandatory spending cuts or tax increases to remain budget-neutral.

Question 5

In the federal budget, what are 'earmarks'?

Accepted Answer

Congressional directives in appropriations bills specifying how funds must be spent on particular projects or locations

Answer

Earmarks are provisions in appropriations legislation directing agencies to spend funds on specific projects, often in a member's district or state.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM Federal Budget Process and Execution 3