An Analysis of the President's Budgetary Proposals for Fiscal Year 1979
Abstract
The President's budget for fiscal year 1979 recommends outlays of $500.2 billion, receipts of $439.6 billion, and a budget deficit of $60.6 billion. This essentially represents a continuation of present spending policies with only a modest increase above current levels adjusted for inflation. However, the President proposes a major reduction in taxes to offset the effects of inflation and the recently legislated increases in social security taxes, as well as to provide stimulation to the economy to sustain the recovery from the 1974-1975 recession. According to the Administration, the outlook for the economy without a change in fiscal and monetary policies is for continued gains in output and employment during the first half of calendar year 1978, followed by a considerable slowdown in growth during the second half of 1978 and during 1979. This would leave unemployment above 6 percent in both years. To maintain real growth in the 4.5 to 5 percent range, and to reduce unemployment below 6 percent by the end of 1979, the President is proposing tax cuts of $25 billion and spending increases of $6 billion from current policy levels in fiscal year 1979.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 28, 1978
- Accession Number
- ADA531060
Entities
Organizations
- Congressional Budget Office