Fiscal Year refers to a one-year period that governments, companies, corporates, and businesses use. The U.S. government Fiscal Year begins on October 1st of every year and ends on September 30th. With that said, the FY2021 will begin on October 1st, 2020, and end on September 30th, 2021.
The Fiscal Year is important because it is when the budget of the U.S. government agencies are determined. If the funding legislation fails to pass, a government shutdown occurs. If it is passed, the set budget will take effect at the start of the calendar year.
As for when the new military budget is set and initiated, it is mostly agreed between at the start of the fiscal year and the beginning of the calendar year. Once again, if the funding legislation doesn’t pass by this date, a government shutdown will occur. From the table below, you can understand when the new military budget is set and goes into effect.
|Military Budget Proposals||Before October 1st|
|Military Budget is Set||October 1st – December 31st|
|New Military Budget||January 1st – December 31st (next year)|
The updates on the budget set by the federal government is very important. If the legislation to fund the U.S. Armed Forces wouldn’t pass, it would mean the military won’t get funding and won’t be able to pay for its soldiers and maintenance will be nearly impossible. Because of this, government shutdowns don’t directly affect the U.S. military. However, there have been multiple occasions where the government shut down and the military wasn’t funding—for a short period of time