An Analysis of the President's Budgetary Proposals for Fiscal Year 1991
Abstract
The Congressional Budget Office (CBO) estimates that the Bush Administration's budget proposals would cut more than $30 billion from the projected 1991 deficit, bringing it down to $131 billion. CBO's deficit estimate is almost $70 billion higher than the Administration's. The difference in estimates arises largely because the Administration's budget makes no allowance for the sizable needs of the Resolution Trust Corporation (RTC) for working capital and uses more optimistic economic assumptions. CBO's current estimate of the baseline deficit--that is, the deficit that would result from a continuation of current policies-is close to $160 billion in both 1990 and 1991. These figures are over $20 billion higher than the previous CBO estimates, which did not reflect RTC's full needs for working capital. The baseline deficit falls to $124 billion in 1992 and $110 billion in 1995. The Administration projects that its proposals will bring the federal budget into surplus by 1993, when it will begin retiring debt held by the public. In contrast, CBO estimates that carrying out the policies proposed in the Administration's budget would still leave a deficit of $79 billion in 1993, although it would nearly balance the budget by 1995. Figure 1-1 compares CBO and Administration projections of the federal budget.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1990
- Accession Number
- ADA530948
Entities
People
- Charles E. Seagrave
- Douglas S. Hamilton
- John C. Peterson
- Kathleen M. O'connell
- Kathy Ruffing
- Larry Ozanne
- Mary B. Maginias
- Michael Miller
- Paul N. Van De Water
- Robert A. Sunshine
Organizations
- Congressional Budget Office