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Highlights

Pursuant to a congressional request, GAO reported on the use of monetary credits as a financing technique for government acquisitions. When monetary credits are used, the government purchases property by promising to reduce the amount it may later collect on other transactions from the seller. Monetary credits do not entail cash disbursements and are frequently not recognized or controlled in budget processes as a form of spending.

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Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should amend the Congressional Budget and Impoundment Control Act of 1974 to provide that it shall not be in order for either the House of Representatives or the Senate to consider any monetary credit bill or resolution unless it includes a provision stating that the monetary credit authorization is to be effective only to the extent or in such amounts as are provided in appropriation acts.
Closed - Implemented
This recommendation was adopted by P.L. 99-177, the Balanced Budget and Emergency Deficit Control Act of 1985.
Congress should amend the Congressional Budget and Impoundment Control Act of 1974 to provide that it shall not be in order for either the House of Representatives or the Senate to consider any monetary credit bill or resolution, unless it includes in any such bill or resolution whose credits when redeemed could reduce collections retained by an agency a further provision requiring before credit issuance an appropriation, budget authority, to restore retained collections that are reduced by redemptions.
Closed - Implemented
This recommendation was adopted by P.L. 99-177, the Balanced Budget and Emergency Deficit Control Act of 1985.

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