TeachMeFinance.com - explain reconciliation
reconciliation -- A special legislative procedure that the Congress uses to implement the
revenue and spending targets established in the budget resolution. The budget resolution may contain
reconciliation instructions, which direct Congressional committees to make changes in existing
revenue or direct spending programs under their jurisdiction to achieve a specified budgetary result.
The legislation to implement those instructions is usually combined into one comprehensive reconciliation
bill. Reconciliation affects revenues, direct spending, and offsetting receipts but usually not
reconciliation -- the process of analyzing two related records and, if differences exist between them, finding the cause and bringing the two records into agreement. A common example of reconciliation is the comparison of an up-to-date check book with a monthly statement from the financial institution holding the account.
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.