Paygo

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Paygo

In the United States, the practice of the federal government not to authorize increased spending or tax cuts without offsetting it by decreasing spending or raising taxes in some other place. That is, under paygo, all legislation and spending must be revenue neutral. The intent behind paygo is to encourage responsible spending by the federal government. It was in place between 1990 and 2002, and in 2007 and 2008 and was again implemented in 2010. See also: Statutory Pay-As-You-Go Act of 2010.
References in periodicals archive ?
Key terms of the agreements, which are embedded in GLWA's financial projections, include a $50 million annual lease payment to the city, although such moneys may only be used at the city's option to fund pay-go capital improvements related to Detroit's local water and sewer systems or DWSD-related debt service associated with the local systems and/or GLWA regional systems.
Azuri Technologies, a leading provider of pay-go solar products and services across sub-Saharan Africa, has launched Sh2 billion ($20 million) off-balance-sheet debt financing program to provide working capital for the expansion of off-grid energy and service provision in East Africa.
Additionally, the legislation waives pay-go requirements, which have never been enforced, to ensure that tax reform does not lead to program cuts.
Before final passage, the House will need to find a way to pay for the overall legislation in order to comply with House "pay-go" rules.
Early in this Congress, members agreed to adopt so-called Pay-Go budget provisions that require any new spending to be offset, either with cuts in spending for other programs, or by new tax revenue.
Furthermore, the House's defense bill is likely to include a so-called "pay-go" provision.
It does, however, require that legislative language make pay-as-you-go (pay-go) rules statutory for the House of Representatives unless the revenue losses are offset.
5, the House adopted new rules reinstating the "pay-as-you-go" (pay-go) budget rule, which requires any increase in mandatory spending or tax cuts to have revenue offsets.
The so-called "pay-go" rule requires members to include in proposals for new spending or programs offsetting revenue sources or spending cuts.
Pay-as-you-go budgeting - "pay-go" for short - is a common-sense strategy that says proposals to increase spending or reduce revenue must be offset by corresponding spending cuts or tax increases elsewhere in the budget.
It will be financed from low-interest subordinate debt, revenue bonds, and pay-go sources.
While some have claimed the legislation will lead to cuts under pay-go rules, these rules have never been enforced.