Each fiscal year, the US federal government creates a budget to fund various services and programs for the country. To calculate the budget, the government considers its allotted money and expenditures. The budget comes from tax revenue and sale of treasury securities. Expenditures, meanwhile, consist of mandatory spending, discretionary spending, and debt interest.
The government decides how to collect and spend its money for the fiscal year, choosing programs and services that will be consumed or invested in. The federal budget is active from October 1 to September 30 each year.
Often, agencies race against the clock to spend the rest of their budget before the fiscal year ends (September 30). The uncertainty in the annual appropriations process prompts agencies to spend more on contracts than any other month of the year.