A budget proposal for fiscal year 2012 that balances the budget and encourages economic growth
Senator Pat Toomey
May 10, 2011
1
The Problem: Chronic Deficits The United States has entered a new period in which sustained budget deficits have become a fact of modern American politics. Our budget deficits are surpassed only by those accumulated during World War II, as a percentage of the gross domestic product. 1 Yet unlike the temporary deficits that resulted from emergency efforts to win the war, the deficits of the late 20th and early 21st centuries have persisted year after year and reflect decisions made by Congress regarding the regular operations of government. The period beginning in the early 1970s, when the modern budget process was first implemented, and ending in 1997, when Congress balanced the budget, represents the longest period of consecutive deficits on record. Moreover, the period beginning in 2002, when deficits returned after four years of surpluses, appears on track to surpass its predecessor.2 Indeed, deficits that far exceed those accumulated over the last 25 years are projected to continue well into the future. Such forecasts have led some to label the current period the “age of deficits.” The persistence of such deficits and the recent, dramatic increases in their size are indications that the nation is currently on an unsustainable fiscal path. The current path is “unsustainable” because, absent fundamental spending reforms, these deficits will only grow both in absolute terms and, more problematically, as a percentage of GDP. In addition, the debt that results from annual deficits will increasingly cause slower economic growth, higher taxes and less security. Increased government spending means a reduction in the amount of private investment and higher taxes on the American people, which leads to a lower quality of life for all. Massive budget deficits will also eventually reduce the resources available for national defense and securing the homeland. A continuation of the current fiscal policy increases the possibility of another crisis, but this time it may be much worse than the great recession in 2008. On the current trajectory, a fiscal crisis would likely be accompanied by a collapse in the value of the dollar, a dramatic increase in inflation and interest rates, and perhaps even a failed Treasury auction as lenders lose confidence in the creditworthiness of the United States. Such events would seriously damage our economy and would destroy jobs. The current situation is a result of a massive increase in government spending over the last decade. This year, government spending totaled 24 percent of GDP, twice the level of the New Deal when the government took dramatic steps in a failed attempt to end the Great Depression. Even more troubling, total federal spending has doubled in the 10 years since 2000, leading to ever-increasing annual budget deficits.
In current dollars, the highest war-time deficit was $54.6 billion (30.3 percent of GDP). The total amount of deficit spending from 1941 to 1945 was $175.2 billion. Deficits as a percentage of GDP during this period ranged from 4.3 percent in 1941 to 30.3 percent in 1943 and 21.5 percent in 1945. In contrast, the deficit in 2009 was $1.4 trillion (9.9 percent of GDP). The total amount of deficit spending from 2005 to 2009 was $2.598 trillion, and deficits as a percentage of GDP during this period ranged from 2.6 percent in 2005 to 9.9 percent in 2009.
1
2
For example, the deficit totaled $248 billion in 2006, approximately 1.9 percent of GDP. In 2007, the deficit fell to $162 billion, or 1.2 percent of GDP. However, this number increased significantly in 2010 and 2011, when the deficit represented 10 percent and 9 percent of GDP respectively. This year, the annual deficit is projected to total an astounding $1.4 trillion. Annual deficits add up to the total debt of the U.S. government. In 1988, publicly-held debt totaled 41 percent of GDP. The total debt of the government remained fairly stable through 2008, when it amounted to 40 percent of GDP. Yet today, just two short years later, total publicly-held debt amounts to 64 percent of GDP, and it is on track to represent 69 percent of GDP by the end of the fiscal year. Most troubling, we are on track to surpass a debt-to-GDP ratio of 100 percent soon. The consequences of deficits of this size and the resulting mountain of debt are very real. The cost of debt service alone will crowd out other spending in the federal budget. Today, interest payments on the debt amount to approximately 6 percent of total spending, yet this number is projected to rise considerably. In the president’s budget, interest payments rise to 16 percent of all spending by 2021, despite several unrealistically optimistic projections, making it the fastestgrowing line item in the federal budget. The corresponding level of government borrowing crowds out private investment and ultimately slows and reduces economic growth. To put this in to perspective, Greece ran deficits of 13.6 percent of GDP and carried a debt load of 110 percent of GDP in 2009. That is not too far from where we are now – but no one would suggest that the United States should follow Greece’s lead. The Solution: Restore Balance A budget is a governing document; it represents the priorities and governing agenda of the Congress. As a result, the budget process is central to congressional decision making. The bad news is that Congress has chosen to run deficits for 33 of the last 36 years. The good news is that these deficits represent a political, rather than an economic, problem, and Congress is quite capable of finding a solution. Congress did just that for four years from 1998 to 2001. During this period, Congress successfully balanced the budget and transformed regular deficits into recurring surpluses. Put simply, deficits are not inevitable; they can be stopped. Yet the fact remains that Congress has chosen not to make balanced budgets a priority. The return of deficit spending in 2002 and the growing regularity of trillion-dollar deficits in the years after 2008 are particularly perplexing given the apparent bipartisan support for reducing the deficit and imposing some degree of fiscal discipline. Moreover, public opinion has been decidedly against deficit spending in recent years. Despite the public demand for fiscal responsibility, Congress and the president have recently made a bad situation worse. If past efforts have not worked, then Congress must change the way it approaches the problem and set a goal that is worthy of the sacrifices needed to meet it. In 1997, adopting a goal of zero deficits ultimately led to the first balanced budget in almost 30 years. It is unlikely that the American people will ever fully support the reductions in 3
government spending necessary to stabilize deficits at 3 percent of GDP or to stabilize the debt at 60 percent of GDP. A balanced budget goal counterintuitively makes putting the nation on a sustainable fiscal path easier because it provides a goal that an overwhelming majority of Americans would like to attain. Restoring balance entails two distinct, but related, paths: near-term (discretionary and nonMedicare and Social Security entitlement spending) and long-term (Medicare and Social Security). The first step must be to reduce discretionary spending and non-Medicare and Social Security spending. This category of expenditures has been the primary driver of deficits over the last decade, and continuing to spend at such high rates precludes an effort to tackle the long-term challenges they present. While Social Security, Medicare and Medicaid require structural reforms soon, it is neither necessary – nor politically feasible – to take them on all at once. Focusing on just the current 10year budget window, this budget makes no changes to Social Security. Changes to Medicare are limited to restoring the fictitious and unspecified cuts projected in the president’s budget. This budget calls for block-granting Medicaid funding at reduced levels to the states while providing them the flexibility to devise their own systems for providing health care to the poor. Senator Toomey’s Budget Overview This budget balances by fiscal year 2020 and achieves a modest surplus in fiscal year 2021.
Deficits, Balanced Budget vs. Obama Budget
1,800 1,600 1,400 ($ billion) 1,200 1,000 800 600 400
200
0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Balanced Budget Obama (CBO) Obama (OMB) 4
With this surplus, we can finally begin the long overdue process of paying down our national debt.
Publicly Held Debt, Balanced Budget vs. Obama Budget
25,000
20,000
($ billions)
15,000
10,000
5,000
0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Balanced Budget Obama (CBO) Obama (OMB)
This budget reduces publicly-held debt $4.9 trillion below the levels projected in the president’s plan.3 Accordingly, this budget reduces publicly held debt to less than 55 percent of GDP by 2021 and lowers total spending to 18.4 percent of GDP. Spending This budget spends approximately 3 percent less than the House-passed budget and about 16 percent less than the president’s budget over ten years.
3
This figure is a comparison of deficits accumulated over ten years in the Toomey budget against deficits in the OMB’s estimate of the President’s budget. The Congressional Budget Office has predicted that Obama’s budget will accumulate nearly $9.5 trillion in new deficits, which is about $7.1 trillion more than the Toomey budget.
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Federal Spending, Balanced Budget vs. Obama Budget
6,000 5,000 4,000 ($ billions) 3,000 2,000 1,000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Balanced Budget Obama (CBO) Obama (OMB)
Medicare Every year, Congress pretends that doctors will take a massive pay cut in order to artificially deflate the cost of Medicare and make future deficits and spending appear smaller. This budget acknowledges that Congress will, and should, reform the broken Sustainable Growth Rate. The full ten-year $300 billion cost of fixing the SGR is incorporated into the cost of Medicare. While savings are achieved by adopting medical malpractice reform, honestly accounting for the full cost of reforming the SGR results in Medicare expenditures that are higher than the President’s budget or the CBO baseline. Medicaid This budget promotes flexibility by implementing a block-grant program to the states. To hold down costs, it calls for the gradual reduction in Medicaid spending to $14 billion more than prestimulus levels (FY 2008 level) by 2019. These levels represent a more accurate baseline for future Medicaid spending, as they do not reflect higher program enrollees as a result of the economic downturn in 2009 and the increased federal matching percentages contained in the stimulus. Both of these events artificially and temporarily increased Medicaid spending. The steps taken in this budget would keep total Medicaid spending above the 2000 level, adjusted for population growth and inflation, for the entire 10-year period. 6
Non-Defense Discretionary This budget reduces non-defense discretionary spending to 2006 levels ($435 billion) in 2012. It then freezes this category of spending for the subsequent six years. Future increases in nondefense discretionary spending are indexed to the consumer price index. Defense Like the plans presented by the president and adopted by the House, this budget implements the savings identified by Defense Secretary Robert Gates to slow the growth of defense spending without compromising America’s security. However, it differs from both approaches by assuming a full withdrawal from Iraq and Afghanistan by 2018. Any future expenditures of supplemental war spending after this point will be contingent on security needs and must be offset with spending reductions elsewhere for in the budget. Other Mandatory Spending This budget gradually reduces other mandatory spending (excluding Social Security, Medicare and Medicaid) to slightly more than 2007 levels by 2014. After 2014, spending on these programs increases each year. Among its policy assumptions, this budget calls for the reform of welfare programs by setting fixed annual spending caps. Economic Assumptions/Revenue Economic Assumptions This budget is based on conservative nominal GDP growth assumptions as calculated by the Global Insight model, a macroeconomic forecasting model widely used in the private sector and throughout government, including by the Congressional Budget Office for various purposes. The House budget uses an even more conservative macroeconomic model from CBO that predicts average nominal GDP growth of 4.75 percent, while the president’s budget is based on average nominal forecasts of 5.05 percent GDP growth. The Global Insight macroeconomic model used in this budget predicts average nominal GDP growth of 4.84 percent. The modestly stronger GDP growth in this budget very likely understates the positive impact of its economic policies and tax reform. Reducing spending, putting the government on a sustainable fiscal path and balancing the budget, all while significantly lowering marginal income tax rates, would likely result in a record, sustained surge in economic growth. There are historical precedents for departing from CBO baseline economic assumptions. For example, congressional budget resolutions in 1988 through 1991 and 2003 used higher GDP growth numbers based on administration figures. Budget resolutions during the 1996-1998 period used negotiated estimates.
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Within a historical context, the economic growth estimates used by this budget are very cautious. The policies contained in this budget will yield average real economic growth rates of 3.05 percent over the next decade. In the past, post-recession recovery periods have seen real GDP growth of about 4.2 percent. Tax Policy This budget promotes pro-growth economic policies that will create jobs and prosperity by simplifying the tax code. Specifically, this plan calls for the consolidation of the current six personal income tax brackets into three brackets. It also seeks to lower marginal rates and eliminate special-interest tax loopholes and deductions. Additionally, it proposes a reduction in the corporate tax rate from 35 percent to 25 percent. Such pro-growth tax reform will encourage economic growth and will create jobs. These tax changes will be revenue neutral when scored statically, but in fact, will help generate strong economic growth, which will in turn yield surging tax revenue. In an effort to protect millions of American taxpayers from the alternative minimum tax (AMT), this budget calls for the AMT to be indexed for inflation. It moves us to a territorial tax system so we will no longer hinder economic growth by subjecting overseas profits of American corporate subsidiaries to double taxation. Taken together, these changes will return revenue to 18.5 percent of GDP – well within the historical norm – and allow the federal government to fund essential programs while simultaneously fostering economic growth.
Balanced Budget: Spending and Revenues as % of GDP
26.0% 24.0% 22.0% 20.0%
18.0%
16.0% 14.0% 12.0% 10.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenue (% GDP) Outlays (% GDP) 8
Fiscal Year 2012 Budget Resolution by Function
OVERVIEW Revenue As % of GDP Outlays As % of GDP Deficits As % of GDP Debt held by public As % of GDP Debt Subject to Limit GDP TOTALS Total Revenue On-Budget Off-Budget Total Spending BA TO BA TO BA TO 2011 2,230 14.8% 3,625 24.0% (1,395) -9.2% 10,363 68.7% 14,984 15,094 2011 2,230 1,664 566 3,589 3,625 3,089 3,128 500 497 (1,395) (1,463) 69 2012 2,558 16.1% 3,477 21.8% (919) -5.8% 11,353 71.2% 16,137 15,936 2012 2,558 1,891 667 3,385 3,477 2,801 2,896 584 581 (919) (1,005) 86 2013 2,964 17.7% 3,485 20.8% (521) -3.1% 11,975 71.5% 16,928 16,738 2013 2,964 2,232 732 3,410 3,485 2,763 2,842 647 643 (521) (611) 89 2014 3,216 18.3% 3,508 19.9% (291) -1.7% 12,358 70.3% 17,501 17,585 2014 3,216 2,447 769 3,506 3,508 2,822 2,827 684 680 (291) (381) 89 2015 3,391 18.3% 3,623 19.6% (233) -1.3% 12,682 68.5% 18,047 18,523 2015 3,391 2,579 811 3,648 3,623 2,925 2,905 723 719 (233) (325) 93 2016 3,524 18.1% 3,765 19.4% (241) -1.2% 13,002 66.9% 18,611 19,430 2016 3,524 2,669 854 3,802 3,765 3,039 3,006 764 759 (241) (337) 95 2017 3,736 18.4% 3,853 19.0% (117) -0.6% 13,188 64.9% 19,058 20,331 2017 3,736 2,840 896 3,906 3,853 3,097 3,049 809 804 (117) (209) 92 2018 3,916 18.4% 3,955 18.6% (38) -0.2% 13,284 62.4% 19,435 21,275 2018 3,916 2,979 937 4,019 3,955 3,161 3,102 858 853 (38) (122) 84 2019 4,108 18.4% 4,140 18.6% (32) -0.1% 13,355 60.0% 19,774 22,275 2019 4,108 3,128 980 4,191 4,140 3,281 3,235 911 905 (32) (107) 75 2020 4,325 18.5% 4,302 18.4% 23 0.1% 13,358 57.3% 20,045 23,326 2020 4,325 3,303 1,022 4,359 4,302 3,391 3,341 968 962 23 (38) 61 2021 10 yr. Total 4,566 36,304 18.7% 4,493 18.4% 73 0.3% 13,290 54.5% 20,264 24,393 38,602
(2,298)
13,290
20,264 199,812
2021 10 yr. Total 4,566 36,304 3,499 27,567 1,067 8,736 4,553 4,493 3,526 3,472 1,027 1,021 73 27 46 38,779 38,602 30,804 30,675 7,975 7,926 (2,298) (3,108) 810
On-budget
Off-budget
Deficits Deficit (on-budget) Deficit (off-budget)
9
DISCRETIONARY All Discretionary Spending BA TO On-budget BA TO BA TO BA TO BA TO
2011 1,226.6 1,364.5 1,220.6 1,358.5 6.0 6.0 711.5 710.4 515.1 654.1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total 1,137.4 1,076.5 1,094.5 1,106.8 1,100.6 1,088.0 1,093.7 1,107.5 1,119.4 1,152.7 11,077 1,277.4 1,203.2 1,160.8 1,149.1 1,133.4 1,110.8 1,109.7 1,128.1 1,139.8 1,171.7 11,584 1,131.6 1,070.8 1,088.8 1,101.0 1,094.9 1,082.2 1,087.7 1,101.3 1,113.1 1,146.3 1,271.4 1,197.3 1,154.9 1,143.2 1,127.5 1,104.8 1,103.7 1,121.9 1,133.5 1,165.2 5.8 5.9 702.3 704.7 435.0 572.7 5.8 5.9 643.5 683.2 433.0 520.0 5.8 5.9 659.5 665.0 435.0 495.7 5.8 5.9 671.9 666.2 434.9 482.9 5.8 5.9 665.6 659.1 435.0 474.2 5.8 5.9 655.0 644.5 433.1 466.3 6.0 6.0 658.3 642.8 435.4 466.9 6.1 6.2 667.0 657.4 440.5 470.7 6.3 6.3 671.0 663.6 448.4 476.2 6.4 6.5 695.0 680.4 457.7 491.2 11,018 11,523 59 60 6,689 6,667 4,388 4,917
Off-budget
Defense (050 + 970)
Non-Defense
MANDATORY SPENDING All Mandatory
BA TO BA TO BA TO
2011 2,362.6 2,260.3 1,868.8 1,769.3 493.8 491.0 2011 0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total 2,258.3 2,344.5 2,417.4 2,542.5 2,702.9 2,818.7 2,926.2 3,085.1 3,240.5 3,401.6 27,737.8 2,210.7 2,293.2 2,353.0 2,475.4 2,632.8 2,743.7 2,846.1 3,013.2 3,163.8 3,322.0 27,053.9 1,680.4 1,703.6 1,739.1 1,825.3 1,945.0 2,015.5 2,073.9 2,180.6 2,278.6 2,380.8 1,636.0 1,655.8 1,678.5 1,762.5 1,879.6 1,945.7 1,999.3 2,114.5 2,208.3 2,307.6 577.9 574.7 2012 -11 -11 640.9 637.4 2013 -11 -11 678.3 674.5 2014 -6 -6 717.2 712.9 2015 -1 -1 757.9 753.3 2016 -1 -1 803.2 798.0 2017 -1 -1 852.3 846.8 2018 -1 -1 904.5 898.7 2019 -1 -1 961.9 1,020.9 955.5 1,014.4 2020 -1 -1 19,822.8 19,187.8 7,915.1 7,866.1
On-budget
Off-budget
ASSET SALES Sale of land, underutilized BA TO buildings, property
2021 10 yr. Total -1 -36 -1 -36
Note: BA stands for Budget authority TO: stands for total outlays.
10
MANDATORY FUNCTIONS (050) National Defense
BA TO BA TO BA TO BA TO
2011 6.1 6.1 5.9 -4.7 0.1 0.1 2.3 0.7 2.1 2.2 21.6 15.2 0.3 -10.4 -3.2 -13.9 3.5 3.5 58.3 2.3 3.4 0.8
2012 6.8 6.8 4.2 -2.9 0.1 0.1 -0.8 -1.8 -1.3 -1.1 7.9 8.0 19.1 11.5 18.4 10.8 0.7 0.7 36.6 2.2 -0.2 -0.2
2013 6.8 6.7 3.3 -1.0 0.1 0.1 -0.8 -1.8 -4.3 -3.9 7.7 8.2 13.0 4.2 13.3 4.5 -0.3 -0.3 38.7 2.3 -0.1 -0.3
2014 6.9 6.8 -0.6 -0.8 0.1 0.1 -0.9 -1.8 -4.4 -4.0 7.7 7.7 10.3 -11.3 10.4 -11.2 -0.1 -0.1 39.9 2.6 -0.1 -0.3
2015 7.0 7.0 -2.0 -0.9 0.1 0.1 -1.4 -2.2 -4.5 -4.2 7.8 7.7 9.1 -14.5 9.2 -14.4 -0.1 -0.1 41.1 2.7 -0.1 -0.3
2016 7.1 7.1 -3.0 -0.6 0.1 0.1 -1.4 -2.2 -4.7 -4.4 7.9 7.8 8.3 -17.8 8.4 -17.7 -0.1 -0.1 41.1 2.8 -0.1 -0.3
2017 7.2 7.3 -1.4 -0.2 0.1 0.1 -1.5 -2.1 -4.8 -4.6 8.0 7.9 6.9 -19.1 7.1 -18.9 -0.2 -0.2 41.1 2.8 -0.1 -0.3
2018 7.4 7.5 -0.4 -0.2 0.1 0.1 -1.5 -2.1 -4.5 -4.4 8.1 8.0 5.7 -22.7 5.7 -22.7 0.0 0.0 42.1 2.8 -0.2 -0.3
2019 7.6 7.6 -0.4 -1.8 0.1 0.1 -1.6 -2.3 -4.9 -4.7 8.3 8.1 5.2 -14.9 5.2 -14.9 0.0 0.0 42.1 2.8 -0.2 -0.3
2020 7.8 7.8 -0.3 -2.9 0.1 0.1 -1.6 -2.3 -4.9 -4.8 8.4 8.2 4.6 -16.0 4.6 -16.0 0.0 0.0 42.1 2.8 -0.2 -0.3
2021 10 yr. Total 8.0 72.6 8.0 72.5 -0.3 -2.9 0.1 0.1 -1.6 -2.3 -5.0 -5.0 8.5 8.3 4.8 -17.4 4.8 -17.4 0.0 0.0 42.2 2.8 -0.2 -0.3 -1.0 -14.2 1.2 1.2 -13.1 -20.8 -43.3 -41.1 80.2 79.8 86.9 -118.0 87.0 -117.9 -0.1 -0.1 406.9 26.5 -1.5 -2.6
(150) International Affairs
(250) General Science, Space, and Technology (270) Energy
(300) Natural Resources and BA the Environment TO (350) Agriculture BA TO BA TO BA TO BA TO BA TO BA TO
(370) Commerce and Housing Credit (370) On-budget
(370) Off-budget
(400) Transportation
(450) Community and Regional Development
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MANDATORY FUNCTIONS (500) Education, Training, Employment, Services (550) Health
BA TO BA TO BA TO BA TO BA TO BA TO BA TO
2011 -20.5 -16.2 326.2 308.9 485.5 485.2 530.6 533.8 729.6 726.8 106.5 106.5 623.1 620.3 72.5 72.5 2.3 2.6 10.0 8.4 -86.9 -86.9
2012 -10.2 -4.0 287.9 287.5 482.9 482.7 420.4 419.0 763.6 760.4 54.4 54.4 709.1 705.9 69.4 69.3 3.1 2.8 6.6 8.2 -93.1 -93.1
2013 -12.7 -8.7 292.1 291.8 525.8 525.6 377.2 375.2 802.2 798.6 29.1 29.1 773.1 769.5 69.1 69.0 1.8 2.4 6.0 6.0 -96.2 -96.2
2014 -10.6 -9.6 279.2 278.5 555.8 555.7 327.4 326.2 845.2 841.4 32.7 32.7 812.5 808.7 71.3 71.3 1.6 1.8 6.0 6.0 -98.3 -98.3
2015 -6.8 -6.1 273.7 273.5 580.4 580.2 328.8 327.2 892.1 887.8 36.3 36.3 855.9 851.6 73.3 73.3 1.4 1.4 6.0 6.0 -102.3 -102.3
2016 -2.7 -2.5 262.5 262.1 630.0 629.9 335.4 333.1
2017 -2.4 -1.9 262.9 262.7 652.9 652.8 335.9 329.8
2018 -5.0 -3.7 257.6 256.9 678.1 677.9 338.8 331.9
2019 -6.4 -4.4 253.4 253.3 740.1 740.0 349.7 343.5
2020 -6.7 -4.8 257.1 256.8 795.7 795.6 356.5 348.1
2021 10 yr. Total -7.1 -70.6 -5.6 -51.2 271.8 271.4 853.6 853.5 366.9 357.7 2,698.1 2,694.4 6,495.3 6,493.9 3,536.9 3,491.7 9,911.6 9,862.6 461.8 461.8 9,449.8 9,400.9 766.7 766.3 23.2 23.6 61.6 63.2 -1,105.8 -1,105.8
(570) Medicare
(600) Income Security
(650) Social Security
943.2 1,000.5 1,063.0 1,129.5 1,200.2 1,272.1 938.5 995.3 1,057.6 1,123.6 1,193.7 1,265.6 40.2 40.2 903.0 898.4 80.5 80.5 3.4 3.4 6.1 6.1 -104.4 -104.4 44.3 44.3 48.7 48.7 53.5 53.5 58.6 58.6 64.1 64.1
(650) On-budget
(650) Off-budget
956.3 1,014.3 1,076.0 1,141.6 1,208.0 951.1 1,008.8 1,070.1 1,135.2 1,201.5 77.3 77.3 1.6 1.6 6.1 6.1 -110.5 -110.5 74.2 74.2 1.4 1.4 6.1 6.1 -117.1 -117.1 81.6 81.6 1.4 1.4 6.3 6.3 -122.9 -122.9 83.8 83.8 3.3 3.3 6.2 6.2 -127.8 -127.8 86.1 86.1 4.2 4.2 6.3 6.3 -133.3 -133.3
(700) Veterans Benefits and BA Services TO (750) Administration of Justice BA TO
(800) General Government BA TO (950) Undistributed Offsetting Receipts BA TO
12
MANDATORY FUNCTIONS (950) On-budget
BA TO BA TO BA TO BA TO BA TO
2011 -71.6 -71.6 -15.3 -15.3 213.0 213.0 330.5 330.5 -117.5 -117.5
2012 -77.9 -77.9 -15.2 -15.2 255.4 255.4 372.1 372.1 -116.7 -116.7
2013 -80.3 -80.3 -15.8 -15.8 314.8 314.8 430.8 430.8 -116.0 -116.0
2014 -81.8 -81.8 -16.5 -16.5 381.0 381.0 498.6 498.6 -117.6 -117.6
2015 -84.9 -84.9 -17.4 -17.4 438.8 438.8 560.0 560.0 -121.2 -121.2
2016 -85.9 -85.9 -18.4 -18.4 493.7 493.7 620.3 620.3 -126.6 -126.6
2017 -91.2 -91.2 -19.2 -19.2 538.8 538.8 672.4 672.4 -133.6 -133.6
2018 -97.1 -97.1 -20.0 -20.0 572.2 572.2 714.2 714.2 -142.0 -142.0
2019 -101.7 -101.7 -21.1 -21.1 596.2 596.2 746.5 746.5 -150.3 -150.3
2020 -105.6 -105.6 -22.1 -22.1 616.0 616.0 773.6 773.6 -157.6 -157.6
2021 10 yr. Total -110.2 -916.7 -110.2 -916.7 -23.1 -23.1 624.8 624.8 788.8 788.8 -164.0 -164.0 -189.0 -189.0 4,831.8 4,831.8 6,177.4 6,177.4 -1,345.6 -1,345.6
(950) Off-budget
(900) Net Interest
(900) On-budget
(900) Off-budget
DISCRETIONARY SPENDING All Discretionary Spending BA TO On-budget BA TO BA TO BA TO BA TO
2011 1,226.6 1,364.5 1,220.6 1,358.5 6.0 6.0 711.5 710.4 515.1 654.1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total 1,137.4 1,076.5 1,094.5 1,106.8 1,100.6 1,088.0 1,093.7 1,107.5 1,119.4 1,152.7 12,303.7 1,277.4 1,203.2 1,160.8 1,149.1 1,133.4 1,110.8 1,109.7 1,128.1 1,139.8 1,171.7 12,948.3 1,131.6 1,070.8 1,088.8 1,101.0 1,094.9 1,082.2 1,087.7 1,101.3 1,113.1 1,146.3 1,271.4 1,197.3 1,154.9 1,143.2 1,127.5 1,104.8 1,103.7 1,121.9 1,133.5 1,165.2 5.8 5.9 702.3 704.7 435.0 572.7 5.8 5.9 643.5 683.2 433.0 520.0 5.8 5.9 659.5 665.0 435.0 495.7 5.8 5.9 671.9 666.2 434.9 482.9 5.8 5.9 665.6 659.1 435.0 474.2 5.8 5.9 655.0 644.5 433.1 466.3 6.0 6.0 658.3 642.8 435.4 466.9 6.1 6.2 667.0 657.4 440.5 470.7 6.3 6.3 671.0 663.6 448.4 476.2 6.4 6.5 695.0 680.4 457.7 491.2 12,238.2 12,881.9 65.5 66.4 7,400.6 7,377.3 4,903.1 5,571.0
Off-budget
(050 + 970) Defense
Non-Defense
13
DISCRETIONARY FUNCTIONS (050) National Defense BA TO (150) International Affairs BA TO BA TO BA TO
2011 555.1 634.3 52.3 50.7 30.4 31.6 4.5 12.8 33.0 43.3 5.8 6.2 -1.8 2.5 -2.1 2.2 0.3 0.3 31.0 92.3 14.7 23.8
2012 575.8 586.8 29.0 35.2 24.9 26.4 1.9 12.0 28.8 34.1 4.9 5.6 -4.2 -0.1 -4.4 -0.4 0.3 0.3 23.8 80.2 11.4 21.3
2013 593.5 590.5 28.0 31.1 26.9 27.6 1.8 8.9 27.2 31.0 4.9 5.0 -4.2 -2.6 -4.4 -2.8 0.3 0.3 23.7 70.9 11.4 18.7
2014 609.5 600.1 28.0 28.1 27.2 27.6 1.8 6.0 25.6 29.1 4.9 4.8 -4.2 -2.8 -4.4 -3.1 0.3 0.3 24.8 67.5 11.3 14.9
2015 621.9 611.8 26.9 27.0 27.2 27.3 1.8 2.8 25.4 25.7 4.9 4.7 -4.2 -3.0 -4.5 -3.2 0.3 0.3 24.7 65.7 11.3 13.8
2016 634.9 628.4 25.9 26.0 27.2 27.4 1.8 1.9 24.1 24.2 4.9 4.7 -4.2 -3.7 -4.5 -4.0 0.3 0.3 27.7 65.6 11.1 12.1
2017 646.5 636.0 23.4 23.6 27.1 27.2 1.8 1.9 22.3 22.3 4.9 4.7 -4.3 -3.9 -4.6 -4.2 0.3 0.3 33.5 66.7 11.1 11.1
2018 658.3 642.8 23.4 23.5 27.1 27.2 1.8 1.9 22.0 22.1 4.9 4.9 -4.4 -4.0 -4.7 -4.3 0.3 0.3 35.0 67.1 10.8 10.9
2019 667.0 657.4 23.1 23.2 28.1 27.6 1.9 1.9 22.0 22.0 4.9 4.9 -4.5 -4.1 -4.8 -4.3 0.3 0.3 35.5 67.5 10.8 10.8
2020 671.0 663.6 23.1 23.1 29.6 27.9 1.9 1.9 22.0 22.0 4.9 4.9 -4.6 -4.1 -4.9 -4.4 0.3 0.3 38.1 69.0 10.8 10.8
2021 10 yr. Total 695.0 6,373.3 680.4 6,297.8 25.0 23.1 29.6 28.2 1.9 1.9 22.0 22.0 4.9 4.9 -4.7 -4.2 -5.0 -4.4 0.3 0.3 41.4 80.0 10.8 10.8 255.8 263.9 275.0 274.4 18.3 40.9 241.5 254.5 49.0 49.1 -43.6 -32.5 -46.3 -35.2 2.7 2.7 308.2 700.3 111.0 135.2
(250) General Science, Space, and Technology (270) Energy
(300) Natural Resources and BA the Environment TO (350) Agriculture BA TO BA TO BA TO BA TO BA TO BA TO
(370) Commerce and Housing Credit (370) On-budget
(370) Off-budget
(400) Transportation
(450) Community and Regional Development
14
DISCRETIONARY FUNCTIONS (500) Education, Training, BA Employment, Services TO (550) Health (570) Medicare (600) Income Security BA TO BA TO BA TO BA TO BA TO BA TO
2011 92.4 115.7 54.8 63.3 5.9 5.8 63.4 72.1 5.5 5.8 -0.3 0.0 5.8 5.8 56.7 55.6 50.4 52.8 17.3 20.2 -1.1 -0.3 156.4 76.1
2012 77.0 99.8 50.1 60.2 4.9 5.3 55.0 60.4 5.5 5.9 0.0 0.2 5.5 5.7 59.0 57.9 47.0 49.8 16.0 18.9 0.0 0.0 126.5 117.8
2013 76.6 81.7 50.0 53.2 4.9 5.2 56.3 58.3 5.5 5.8 0.0 0.2 5.5 5.6 60.9 61.0 43.0 46.8 16.0 17.3 0.0 0.0 50.0 92.7
2014 76.7 77.6 50.1 50.8 4.8 5.0 56.7 57.3 5.5 5.7 0.0 0.1 5.5 5.6 62.8 62.8 43.0 45.0 16.0 16.4 0.0 0.0 50.0 64.9
2015 76.2 76.6 50.1 50.1 4.8 5.0 56.4 56.8 5.5 5.7 0.0 0.1 5.5 5.6 64.8 64.6 43.0 44.2 16.0 15.8 0.0 0.0 50.0 54.4
2016 75.2 75.4 50.1 49.4 4.7 4.9 55.1 55.6 5.5 5.6 0.0 0.0 5.5 5.6 66.9 66.4 43.0 43.4 16.0 15.4 0.0 0.0 30.8 30.8
2017 72.8 72.9 50.1 49.3 4.8 5.0 51.2 52.3 5.6 5.7 0.0 0.0 5.6 5.7 69.0 68.4 43.5 43.7 16.2 15.5 0.0 0.0 8.5 8.5
2018 71.4 71.5 50.1 50.2 4.9 5.1 50.4 50.7 5.7 5.8 0.0 0.0 5.7 5.8 71.2 70.5 44.5 44.2 16.6 15.7 0.0 0.0 0.0 0.0
2019 71.1 71.2 50.1 50.2 5.0 5.2 50.4 50.4 5.9 5.9 0.0 0.0 5.9 5.9 73.5 72.8 45.7 45.5 17.0 15.8 0.0 0.0 0.0 0.0
2020 71.1 71.2 50.1 50.2 5.0 5.2 50.3 50.3 6.0 6.0 0.0 0.0 6.0 6.0 75.8 75.2 46.8 46.5 17.4 16.1 0.0 0.0 0.0 0.0
2021 10 yr. Total 71.0 739.0 71.0 768.8 50.1 50.1 5.2 5.4 50.3 50.3 6.1 6.2 0.0 0.0 6.1 6.2 78.3 77.6 48.0 47.6 17.8 16.5 0.0 0.0 0.0 0.0 501.1 513.5 49.0 51.3 532.0 542.2 56.8 58.1 0.0 0.5 56.8 57.6 682.3 677.1 447.5 456.7 165.2 163.3 0.0 0.0 315.8 369.0
(650) Social Security
(650) On-budget
(650) Off-budget
(700) Veterans Benefits and BA Services TO (750) Administration of Justice BA TO
(800) General Government BA TO (920) Allowances (970) Global War on Terrorism BA TO BA TO
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