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National Debt Glossary: Understanding Government's Obligation Agreements Skip to content

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National Debt Glossary

Obligation

A binding agreement by a government agency to pay for goods, products, services, studies, and the like, either immediately or in the future.

When an agency enters into such an agreement, it incurs an obligation. As the agency makes the required payments, it liquidates the obligation.

SOURCE: House Budget Committee

 

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