Budget Deficit: Appendixes on Outlook, Implications, and Choices

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Report Type	Reports and Testimonies
Report Date	Sept. 28, 1990
Report No.	OCG-90-5A
Subject	Budget controllability Budget cuts Budget deficit Budget outlays Cost control Defense economic analysis Deficit reduction Fiscal policies Government collections Macroeconomic analysis

Summary:

Pursuant to a congressional request, GAO presented a 5-appendix companion volume to its review of the budget problem facing the nation, the implications of the deficit for the U.S. economy, and the choices that must be made to reduce the deficit problem.

GAO noted that: (1) aggressive deficit reduction would not seriously imperil short-term economic growth and could result in lower interest rates, increased exports, strengthened investment, and increased long-term economic growth; (2) it estimated budget savings from defense force reductions by using costs developed by allocating the Department of Defense budget to current forces; and (3) the government could reduce nondefense spending by restructuring the health care system and reducing state and local grants. GAO identified specific programs that might be eliminated or reduced to lower nondefense budget outlays and provided a detailed breakdown of possible revenue options.

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Budget Deficit: Appendixes on Outlook, Implications, and Choices