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Budget Issues: Long-Term Fiscal Outlook

  Premium   Download PDF Now (28 pages)
Report Type Reports and Testimonies
Report Date Feb. 25, 1998
Report No. T-AIMD/OCE-98-83
Subject
Summary:

At the macro level, the federal budget must provide a long-term framework grounded on a linkage of fiscal policy with the long-term economic outlook. This requires a focus on both the overall fiscal policy and the composition of federal activity. Beginning in 1992, Congress requested that GAO provide this perspective by modeling the long-term implications of different fiscal policies for the nation's economy. GAO has periodically updated its model to account for changes in the fiscal and economic environment, and this testimony reflects the fourth iteration of GAO's simulation efforts. GAO discusses the results of its simulations updated to incorporate the Congressional Budget Office's new budget projections. GAO also focuses on another important aspect of budget policy--the programmatic composition and design of federal spending--for which policymakers need to consider the long-term fiscal and spending implications of the government's commitments.

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