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Credit Reform: Appropriation of Negative Subsidy Receipts Raises Questions

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Report Type Reports and Testimonies
Report Date Sept. 26, 1994
Report No. AIMD-94-58
Subject
Summary:

As part of GAO's investigation of several highly technical issues related to implementation of the Federal Credit Reform Act of 1990, this report examines agencies' budgetary treatment of negative subsidies--in which receipts exceed outlays--and whether this treatment could harm program management and budgeting. GAO discusses how the Office of Management and Budget has treated negative subsidies of the Federal Housing Administration's Mutual Mortgage Insurance Fund and the Export-Import Bank in the budget. GAO also notes the budget treatment of the Government National Mortgage Association's negative subsidy receipts. Further, the report discusses an alternative to appropriating the present value of estimated negative subsidy receipts. Further, the report discusses estimated negative subsidy receipts and the additional legislative requirements imposed on the Federal Housing Administration's Mutual Mortgage Insurance program.

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