Pay-As-You-Go


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Pay-As-You-Go

The practice of a government agency funding new projects with money it has on hand from previous appropriations. That is, pay-as-you-go financing requires a government to save to pay for a project for which it does not receive a specific appropriation. The intent behind pay-as-you-go is to encourage responsible spending by a government. This is related to, but distinct from, paygo rules in the United States.
References in periodicals archive ?
The implicit debt of its pay-as-you-go system had grown in excess of 100 percent of GDP.
Rather than adopting pay-as-you-go systems, these countries, including India, Malaysia, Singapore, and a number of African nations, created retirement plans in which there is a single retirement fund or "provident fund" and the government manages all the investment assets.
ChartOne's new View Manager service went live in April 2001, providing the company and its clients with online access to records management on a cost-efficient, pay-as-you-go basis.
"I think being able to purchase things like software, server time and data storage on a pay-as-you-go basis is where the market is going to head in the future," he says, "not just in health care, but across the board."
This is happening to all the pay-as-you-go systems in Europe, Japan, the United States, and Canada.
* "Rabbi trusts"--Putting money into an irrevocable trust protects employees against a refusal to pay--a big advantage over pay-as-you-go programs.
Secular trusts can involve design issues and administrative burdens that rabbi trusts and pay-as-you-go programs do not.
Schieber: First of all, we ran the system purely as a pay-as-you-go system until the early 1980s, when we passed the '83 amendments.
And, at the end of the day, if they blow that money because they invest in companies that blow up, we as a society are really no worse off than a pay-as-you-go system, because we've already decided that we're going to support them.
Since almost all companies account for the cost of these benefits on a pay-as-you-go basis, a practice that has been generally accepted for many years, interested parties will likely comment that a 15-year amortization period is too short and that greater flexibility is appropriate in transition.
While liabilities are not recognized under pay-as-you-go accounting, under any type of accrual accounting a method of liability recognition is needed.