Reducing the Deficit; Spending and Revenue Options

Abstract

Abstract : The Congressional Budget Office (CBO) is required by section 202(f) of the Congressional Budget Act of 1974 to submit an annual report on budgetary options to the Senate and House Committees on the Budget. This year, the report is in two parts, with this report constituting Part II. Part I is entitled The Economic and Budget Outlook: Fiscal Years 1989-1993. Chapter I of this report provides general background information on trends in federal spending, revenues, and the deficit. Recent budgetary legislation and Congressional budget process changes are briefly described. The second chapter deals with approaches for cutting the deficit, alternatively, by an across-the-board process or by adopting several broad strategies for retrenchment in spending or expansion of taxes. The next several chapters present specific options in each of the major spending areas and the last chapter reviews specific revenue options. For each option, an attempt is made to present both sides of the case as fairly as possible. CBO does not endorse the options included, nor does exclusion imply any recommendation. This report concludes with an appendix and an index. The appendix lists the options under the budget functions that would be affected. The index is the first attempt to group the options by subject (key words) for those who want to turn only to a few program areas.