Budget Issues: July 2000 Update of GAO's Long-Term Fiscal Simulations
Abstract
Upon request, the General Accounting Office (GAO) updated its long-term economic model using the latest economic and budget assumptions from the Congressional Budget Office (CBO). Since 1992, GAO has provided the Congress with a long-term perspective on alternative fiscal policy paths. This perspective is important for broad fiscal policy as well as for budget decisions on individual programs. At the macro level, the budget needs to provide a long-term framework grounded on a linkage of fiscal policy with the long-term economic outlook. This requires a focus on both overall fiscal policy and the composition of federal activity. Long-term simulations are useful for comparing the potential outcomes of alternative fiscal policies within a common economic framework. Such simulations can help Congress assess the long-term implications of fiscal policy decisions that are made today. This is especially true where a longer time horizon is necessary to understand the fiscal and spending implications of the government's commitment. For example, the profound demographic changes forecast for our population, beginning just beyond the 10-year budget window, will have enormous consequences for Social Security and Medicare as well as the budget and the economy as a whole.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 26, 2000
- Accession Number
- ADA380610
Entities
Organizations
- United States Government Accountability Office