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Monday, March 06, 2006
CBO's Analysis of the President's Budget
The Congressional Budget Office has completed a preliminary analysis of the President's FY07 Budget.
The report found that the President's proposal will:
- Spend about $925 billion on discretionary programs in FY07;
- Add $35 billion to the CBO's current deficit projections, putting the deficit projection at $371 billion;
- Reduce revenues by nearly $9 billion for FY07;
- Reduce revenues by $282 billion from 2007-2011 if some of the President's expiring 2001 and 2003 tax provisions are extended;
- Increase outlays by $27 billion (mostly in military spending in Iraq and Afghanistan);
- Increase defense funding by an average of 2.8 percent per year through 2011; and
- Reduce Medicare outlays by $138 billion from 2007-2016.
The report also states the deficit will decline as a share of GDP, going from 1.6 percent in 2008 to 1.3 pecent in 2009, and finally stabilizing at approximately 1 percent annually through 2016. These deficit projections, however, exclude the costs of supplemental emergency appropriations, the President's proposal for private Social Security Accounts, as well as the cost of fixing the Alternative Minimum Tax.
Posted by Becky Lewis
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