Agency Debt in the United States
Agency Debt in the Federal Budget Process
Meaning of Agency Debt in the congressional and executive budget processes (GAO source): That portion of the gross federal debt incurred when a federal agency other than the Department of the Treasury (Treasury) is authorized by law to issue debt securities directly to the public or to another government account. While an agency may have authority to borrow directly from the public, agencies usually borrow from Treasury’s Federal Financing Bank (FFB). Since Treasury borrowing required to obtain the money to lend to the agency through FFB is already part of the gross federal debt, to avoid double counting, agency borrowing from FFB is not included in the gross federal debt. In addition, federal fund advances from Treasury to trust funds are not included in the gross federal debt to avoid double counting. Debt of government-sponsored, privately owned enterprises, such as the Federal National Mortgage Association, is not included in the federal debt.
Guide to U.S. Gross Federal Debt (Budget Process)
- Gross Federal Debt
- Treasury Debt
- Agency Debt
Resources
See Also
- Federal Appropriations
- Entries about the United States Budget Process in the Encyclopedia (including Agency Debt)
- Public Debt
Further Reading
- Legislatures and the budget process: the myth of fiscal control
(J Wehner, 2010)
- Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
- Fiscal institutions and fiscal performance
(JM Poterba, J von Hagen, 2008)
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