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Budget Issues: 1991 Budget Estimates: What Went Wrong

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Report Type Reports and Testimonies
Report Date Jan. 15, 1992
Report No. OCG-92-1
Subject
Summary:

GAO is very concerned that the $268.7 billion budget deficit for fiscal year 1991--the largest in the nation's history--was almost triple the original estimate of the Office of Management and Budget. Some of this underestimation may be attributed to events that could not be anticipated, such as the full consequences of U.S. involvement in the Persian Gulf war, but the estimate would have been more accurate had better estimating procedures been followed. This report analyzes some of the factors contributing to the underestimate for 1991 and makes recommendations for improving future projections. The accuracy of budgetary projections must be improved if the government is to make greater progress in straightening out its fiscal affairs.

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