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Budget Trends: Federal Investment Outlays, Fiscal Years 1981-2003

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Report Type Reports and Testimonies
Report Date June 15, 1998
Report No. AIMD-98-184
Subject
Summary:

Concerns still abound about levels of federal and domestically-financed investment and national saving. Reductions in the federal deficit or increases in the surplus help boost national saving and expand the domestic capital available for private investment. At the same time, however, reducing the deficit places constraints on the government's discretionary spending, which finances most federal investment. The constraints on discretionary spending have again tightened with the enactment of the Balanced Budget Act of 1997. Recent congressional initiatives have sought to promote long-term private sector economic growth by increasing federal investment. This report updates an earlier report (GAO/AIMD-97-88, May 1997) on investment trends. It includes new estimates for 1998 through 2003 that are contained in the President's 1999 budget and recalculates the investment component for Defense Department research and development.

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