1、Congressional Research Service ? The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20006Updated March 5, 2001Pay-As-You-Go Rules in the Federal Budget ProcessBill Heniff Jr.Consultant in American National GovernmentGovernment and Finance DivisionThe pay-as-you-go
2、 (PAYGO) rules in the federal budget process require that newdirect spending and revenue legislation be deficit neutral. The net effect of all suchlegislation enacted during a session must not cause a net increase in the budget deficit (ora net decrease in the budget surplus). If direct spending or
3、revenue legislation causes anincrease in the deficit, it must be offset by an equivalent amount of direct spendingreductions, revenue increases, or a combination of both.The Budget Enforcement Act (BEA) of 1990 (title XIII of P.L. 101-508) establishedthe PAYGO procedures for the purpose of preservin
4、g the deficit reduction achieved inlegislation of that year. The PAYGO rules are intended to hold Congress and thePresident accountable for any projected increase in the deficit due to legislative action, butnot for the actual amount of the deficit which could be affected by factors outside theirimm
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