What is the Federal Government’s Fiscal Year?
On September 30, the federal government’s “fiscal year” will come to an end, and a new one will commence the following day on October 1. This fiscal year always begins and ends on these same dates. The important economic impact of the federal government’s fiscal year is that it contains the start and end dates of each federal budget. Every year on October 1, the government must have a new budget in place or continue to enact “resolutions” to keep the federal government operating.
We can all remember a time or two in our lives when there was a “government shutdown.” What happens when, starting October 1, the federal government has not passed a new budget bill and has failed to enact a temporary resolution for the continued funding of government operations. This occurs because, by the end of the “fiscal year,” there is no new budget allocating the necessary funds to operate the federal government. During a shutdown, the government typically resorts to only “essential” operations until a new budget or resolution is passed that continues federal funding.
Congress is currently wrestling with next year’s budget bill. Much will happen in the next few weeks as members of Congress are pressed with a tight deadline with the end of the fiscal year fast approaching. The professionals at The Center for Financial, Legal, and Tax Planning, Inc. are closely monitoring the progress of the budget bill and its potential impact. Please contact us at (618) 997-3436 for more information.