EXOP - Office of Management and Budget

Budget Surplus Incentive

Instead of "use or lose" the government should incentivize agencies for having money left over. If an agency has money left over they should be able to keep half of the excess plus the same budget as the year before. The other half of the excess could go to a debt service fund to pay down the debt. So if an agency was given a $100,000 budget for a year and spent $80,000 the agency would have a $110,000 budget the next year and the debt service fund would get $10,000 to pay down on the debt. The budget for the agency would be $100,000 as a base but would be able to keep excess instead of using it on items that might not be needed. This is a simple concept that I use in my own house as a budget. If I have excess I put it towards my mortgage or other debt. Why shouldn't the government live like the rest of us have to?



Idea No. 15926