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Budget Policy: Long-Term Implications of the Deficit

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Report Type Reports and Testimonies
Report Date March 25, 1993
Report No. T-OCG-93-6
Subject
Summary:

This testimony discusses the consequences of action--or inaction--to reduce the federal budget deficit. Several scenarios are explained, including ignoring the deficit, "muddling through" by holding the deficit to three percent of GNP, balancing the budget, and achieving a budget surplus. The Comptroller General's central message is that, although putting the budget on a path toward balance or surplus will not be easy, delay will not eliminate the hard choices. Delay only guarantees that the choices will be even more difficult and the pain even greater when policy correction is finally made. The choice is not whether to act but when to act and how.

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