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. The federal budget deficits over the last several fiscal years, relative to the size of the economy, reached levels not seen since the end of World War II. Deficit levels are projected to remain elevated through FY2012. The budget deficit for FY2012 is estimated to be $1,480 billion. As concern over the long-term effects of an elevated federal budget deficit grows, the calls for reducing the deficit to more sustainable levels have grown. In his FY2012 budget proposal, the President made several proposals to immediately curb spending, while acknowledging that additional steps are needed to achieve long-term fiscal stability. The President's budget proposed a five-year freeze on non-security discretionary spending, along with other specific programmatic terminations and reductions. The budget also includes a commitment to continued deficit reduction, with the ultimate objective of enacting policies to achieve a sustainable budget deficit. However, the budget lacked specific policy recommendations on how to reach this goal. This report examines the impact on the federal budget of the President's proposals, specifically the proposed freeze in non-security discretionary spending and how the freeze might change the fiscal outlook over the 10-year budget window.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 22, 2011
- Accession Number
- ADA543558
Entities
People
- Mindy R. Levit
Organizations
- Library of Congress