Responsible Budget Targets Act: Setting Government Spending Limits
This act introduces new rules for setting government spending limits to better control the budget. It aims to ensure that the government does not spend more than it earns, which can affect the country's financial stability and future tax burdens on citizens. It establishes mechanisms to adjust spending based on economic conditions and emergency needs.
Key points
Establishes an annual government spending ceiling designed to grow slower than the economy to prevent excessive debt.
Introduces a "primary balance factor" mechanism that adjusts the spending limit based on whether the government spent more or less than its revenue in previous years.
Allows for temporary increases in the spending limit for emergencies, such as natural disasters, but requires these additional expenditures to be offset later.
Requires Congress and the President to adhere to these limits when planning the budget and considering new legislation, aiming to increase fiscal discipline.
Expired
Citizen Poll