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Director Rob Portman February 5, 2007

The document discusses the federal budget deficit and projections showing it declining to a surplus by 2012. It notes that mandatory spending, such as Social Security and Medicare, is overwhelming the rest of the federal budget and that current spending trends are unsustainable. The document also provides data on past savings from reconciliation bills that reduced the growth of mandatory spending.

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losangeles
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70 views8 pages

Director Rob Portman February 5, 2007

The document discusses the federal budget deficit and projections showing it declining to a surplus by 2012. It notes that mandatory spending, such as Social Security and Medicare, is overwhelming the rest of the federal budget and that current spending trends are unsustainable. The document also provides data on past savings from reconciliation bills that reduced the growth of mandatory spending.

Uploaded by

losangeles
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Director Rob Portman

February 5, 2007

0
Balancing the Budget
Deficit in billions of dollars (Deficit as a percent of GDP)
300

250 244 239


1.8% 1.6%
200 187
1.2%
150

100 94
0.6%
54
50
0.3%
0
-61
-0.3%
-50

-100
2007 2008 2009 2010 2011 2012
1
Steady Economic Growth Continues
Percentage real GDP growth, calendar year
5
4.4

4 3.9 ------------- Projections --------------


3.7
3.4
3.2 3.1
3.0 3.0 3.0 2.9
3
2.7
2.5

2
1.6

1 0.8

0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
3
Receipts Return to Historical Average
Receipts as a percent of GDP
25

2006
18.4%
20

15
40-Year Historical Average 18.3%

10
1980 1984 1988 1992 1996 2000 2004 2008 2012
4
Mandatory Spending is Overwhelming
the Rest of the Budget

1962 2006
6% 9%
38%
68% 26%
53%

Discretionary Interest Mandatory


6
Current Trends Are Not Sustainable
Percent of GDP
40
Mandatory Net Interest Discretionary Total Revenues
Spending

30

20

10

0
70

80

90

00

10

20

30

40

50

60

70

80
19

19

19

20

20

20

20

20

20

20

20

20
7
Past Reconciliation Savings
5-Year Mandatory Savings as a Percent of Mandatory Baseline

3.0%
2.8%

2.5%

2.0%
2.0%
1.7%
1.5%
1.1%
1.0%

0.5%

0.0%
OBRA 1990 OBRA 1993 BBA 1997 Proposed
8

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