Which law prohibits expenditures in excess of appropriations?

Which law prohibits expenditures in excess of appropriations?

• A. Budget and Impoundment Control Act
• B. FAR
• C. Antitrust Act
• D. Antideficiency Act

Answer: (D)

Expenditures must be supported by amounts available in the agency’s appropriations. The law that directly prohibits spending or obligating funds beyond what Congress has appropriated is the Antideficiency Act. It bars creating obligations or making expenditures in excess of appropriations, as well as entering into contracts or commitments before funds are available. This keeps agencies from overdrawing the Treasury and maintains fiscal discipline across the government. The other options relate to different areas: the Budget and Impoundment Control Act governs budget procedures and the process for impounding funds; the Federal Acquisition Regulation governs procurement rules; and the Antitrust Act targets competition and monopolistic practices, not appropriations and spend limits.

Expenditures must be supported by amounts available in the agency’s appropriations. The law that directly prohibits spending or obligating funds beyond what Congress has appropriated is the Antideficiency Act. It bars creating obligations or making expenditures in excess of appropriations, as well as entering into contracts or commitments before funds are available. This keeps agencies from overdrawing the Treasury and maintains fiscal discipline across the government.

The other options relate to different areas: the Budget and Impoundment Control Act governs budget procedures and the process for impounding funds; the Federal Acquisition Regulation governs procurement rules; and the Antitrust Act targets competition and monopolistic practices, not appropriations and spend limits.