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Budget Policy: Investment Budgeting for the Federal Government

  Premium   Download PDF Now (16 pages)
Report Type Reports and Testimonies
Report Date Nov. 9, 1993
Report No. T-AIMD-94-54
Subject
Summary:

Although reducing the federal deficit and making wise decisions on investments that will foster economic growth are the most important contributions that the federal government can make to a healthy and growing economy, the current budget structure, with its focus on short-term goals, does not meet these needs. If long-term economic growth is to be increased, the budget needs to focus on long-term decision-making. A federal investment budget component could help Congress and the President make better informed decisions on federal spending on consumption versus investments for the future. GAO, recognizing the importance of the deficit to long-term growth, urges that such a component be established within the context of a unified budget framework striving to cut the deficit over an appropriate period. Setting investment targets in the congressional budget resolution could be a useful and feasible way to implement this concept.

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