Impact on the Federal Budget of Freezing Non-Security Discretionary Spending
Abstract
As economic recovery continues, the focus on the federal budget has shifted, in part, towards deficit reduction. In fiscal year (FY) 2009, the federal budget deficit, relative to the size of the economy, reached a level not seen since the end of World War II. Deficit levels are projected to remain elevated through FY2011. The budget deficit for FY2011, according to CBO's analysis of the President's budget, is projected to be $1,342 billion. In his FY2011 budget, the President made several proposals to curb spending, while acknowledging that additional steps are needed to achieve long-term fiscal stability. The President proposes to freeze non-security discretionary spending for the next three fiscal years (FY2011-FY2013) at FY2010 nominal levels (i.e., spending levels would not be adjusted for inflation). After FY2013, growth in this category of spending would be linked to inflation. Non-security discretionary spending is defined as discretionary spending outside of defense, homeland security, veterans affairs, and international affairs. If enacted in this form, the President's budget projects that this proposal would save approximately $250 billion over the next 10 years.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 12, 2010
- Accession Number
- ADA520801
Entities
People
- Mindy R. Levit
Organizations
- Library of Congress