When is an obligation legally incurred?

An obligation is legally incurred when a government official commits to a spending agreement, subject to available funds. This means that the commitment made by the official indicates a legal responsibility for future expenditures, as long as the necessary funding is available. This concept is crucial in government financial management, where obligations must align with the appropriations granted but are contingent upon official actions taken to enter into those agreements.

In this context, the act of making a commitment does not entirely depend on the signing of a contract, approval of funds, or the passage of a budget by Congress. Rather, it is the initial promise to spend that establishes the legal obligation, provided it adheres to the constraints of available funding. Thus, understanding the timing and nature of these commitments is essential for ensuring proper fiscal responsibility and governance within government operations.