Glossary term
Outlays
Money the federal government actually pays out in a period, as distinct from what it is authorised to spend.
Budget authority is permission to obligate funds. An obligation is a binding commitment — a signed contract, a grant award. An outlay is the cash leaving the Treasury.
The three can fall in different years, which is why a program’s appropriation and its outlays rarely match in any single year, and why the deficit is computed from outlays rather than from what was appropriated.
Where you will see it
Budget documents distinguish budget authority from outlays. A bill can create authority in one year that turns into outlays over several.
Related terms
Used in these explainers