C.1. Balanced Budgets and Deficit Spending

Congress may only authorize those expenditures whose projected outlays do not exceed projected revenues for the same fiscal period, as estimated by the Congressional Budget Office.

Exceptions of limited scope and fixed duration may be enacted in three circumstances:

1. A formally declared war;

2. An economic downturn, as recognized by a separate joint resolution passing with at least three-fifths (³/₅) of Representatives and Senators voting in assent.

In such cases, deficit spending may not exceed the total of the budget items specifically allocated to relieve the triggering condition. It may not be automatically reauthorized for any subsequent fiscal period. If an extension is necessary, Congress must provide that extension “manually” through separate legislation.

At all times, both payments on interest and on principal are considered line items in the federal budget.