Proposing a balanced budget amendment to the Constitution of the United States.
Impact
The implementation of HJR113 would significantly alter how federal budgets are prepared and managed, placing restrictions on the ability of Congress to incur deficits. This could lead to more stringent fiscal policies and potentially impact various social programs that rely on flexible spending. Additionally, federal agencies may face challenges in assuming new responsibilities or reacting to economic downturns due to the imposed cap on expenditures. The requirement for emergency spending would also necessitate a two-thirds majority approval in both houses of Congress, complicating financial responses to crises.
Summary
HJR113 is a proposed joint resolution aimed at amending the United States Constitution to institute a balanced budget requirement for federal expenditures. This amendment would establish that total annual government spending cannot exceed the average revenue collected over the previous three years, adjusted for population growth and inflation. Notably, this regulation would exclude expenditures on debt repayment, thus focusing the budgetary limits on general government spending rather than fiscal obligations already incurred.
Contention
Despite its proponents arguing that a balanced budget is essential for fiscal responsibility and economic stability, the resolution has faced criticism. Opponents raise concerns that such stringent regulations could limit the government's ability to respond effectively to economic emergencies or natural disasters. By necessitating a supermajority for any emergency spending beyond the budget cap, the bill could slow down governmental response during critical situations when swift action is required.