Unified budget
Encyclopedia
In the United States
a unified budget is a federal government budget
in which receipts and outlays from federal funds and the Social Security Trust Fund
are consolidated. The change to a unified budget resulted in a single measure of the fiscal status of the government, based on the sum of all government activity. When these fund groups are consolidated to display budget totals, transactions that are outlays of one fund group (i.e., interfund transactions) are deducted to avoid double counting.
The Budget Enforcement Act of 1990
, however changed this so that the two Social Security Trust Funds, and the operations of the Postal Service, are considered to be 'off-budget' and are excluded from the unified budget. This means that the Social Security Tax is not counted as revenue, and interest on the Trust Funds is counted as an expense to an external entity. Often Federal budget reports will contain two sets of numbers for the yearly Federal Budget: an 'off-budget' deficit (or surplus) and an 'on-budget' deficit (or surplus) the former of course including the receipts and outlays of these budgets, but by law for purposes of balancing the budget they are 'off-budget'.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
a unified budget is a federal government budget
United States federal budget
The Budget of the United States Government is the President's proposal to the U.S. Congress which recommends funding levels for the next fiscal year, beginning October 1. Congressional decisions are governed by rules and legislation regarding the federal budget process...
in which receipts and outlays from federal funds and the Social Security Trust Fund
Social Security Trust Fund
In the United States, the Social Security Trust Fund is a fund operated by the Social Security Administration into which are paid contributions from workers and employers under the Social Security system and out of which benefit payments to retirees, survivors, and the disabled, and general...
are consolidated. The change to a unified budget resulted in a single measure of the fiscal status of the government, based on the sum of all government activity. When these fund groups are consolidated to display budget totals, transactions that are outlays of one fund group (i.e., interfund transactions) are deducted to avoid double counting.
History
The United States government adopted a unified budget in the Johnson administration in 1968, beginning with the 1969 budget. The surplus in the Social Security OASDI (Old Age Survivors and Disabilities Insurance) budget offsets the total deficit, making it appear smaller than it otherwise would.The Budget Enforcement Act of 1990
Budget Enforcement Act of 1990
The Budget Enforcement Act of 1990 was enacted by the United States Congress as title XIII of the Omnibus Budget Reconciliation Act of 1990 to enforce the deficit reduction accomplished by that law and revise the budget control process of the Federal Government...
, however changed this so that the two Social Security Trust Funds, and the operations of the Postal Service, are considered to be 'off-budget' and are excluded from the unified budget. This means that the Social Security Tax is not counted as revenue, and interest on the Trust Funds is counted as an expense to an external entity. Often Federal budget reports will contain two sets of numbers for the yearly Federal Budget: an 'off-budget' deficit (or surplus) and an 'on-budget' deficit (or surplus) the former of course including the receipts and outlays of these budgets, but by law for purposes of balancing the budget they are 'off-budget'.