[Analytical Perspectives]
[Budget Enforcement Act Preview Report]
[13. Review of Direct Spending and Receipts]
[From the U.S. Government Printing Office, www.gpo.gov]
Introduction
The Budget Enforcement Act of 1990 established caps to control
discretionary spending and a pay-as-you-go requirement to control
legislative changes to mandatory programs and revenues. It did not,
however, control the growth of mandatory spending resulting from
economic and technical factors. In August 1993, the President
established procedures to control this growth in mandatory spending by
issuing Executive Order 12857. The Order set targets on the level of
mandatory spending, excluding deposit insurance and net interest, for
1994 through 1997. The Order also specified actions that must be taken
if the targets are exceeded. These actions may include specific revenue
or direct spending changes or reductions in the discretionary caps. The
savings to remove the excess in the prior, current, and/or budget years
can be achieved over a six-year period covering the current year through
four years beyond the budget year. The President also has the option to
recommend breaching the targets because of economic conditions or other
specific reasons. This chapter fulfills the Order's requirements for an
annual review of direct spending and receipts.
As required by the Order, OMB issued an initial report to the Congress
in September 1993 setting the mandatory targets for 1994 through 1997.
The initial targets were based on the economic and technical assumptions
used in preparing the congressional budget resolution for 1994. They
were consistent with the policies in the resolution as adjusted by final
congressional action on the Omnibus Budget Reconciliation Act of 1993
(OBRA93). The Order requires annual adjustment of these targets. In the
1995 and 1996 Budgets, the targets were revised. This review provides
the next annual revision of the targets.
Adjustments to Targets
The targets must be adjusted each year for increases in the estimated
numbers of beneficiaries of mandatory programs, and for changes in
receipts in legislation enacted during the year. Table 13-1 shows the
targets as revised for these circumstances. As the table shows, the
targets have increased by $20.6 billion over the three year period 1995
through 1997 since February 1995.
Table 13-1. SUMMARY OF CHANGES TO MANDATORY TARGETS AND CURRENT LAW
OUTLAYS
(In billions of dollars)
------------------------------------------------------------------------
1995 1996 1997 1995-97
------------------------------------------------------------------------
Changes to mandatory targets
Mandatory targets as of February
1995............................... 793.2 833.3 900.8 .......
Adjustments for:
Increase in beneficiaries........ 0.2 0.2 1.1 1.5
Changes in receipts.............. -0.1 -0.1 0.2 -*
Reclassification of Universal
Service Fund..................... 4.3 4.3 4.3 12.9
Changes due to category shifts... 1.8 2.3 2.1 6.3
-----------------------------------
Total adjustments................. 6.2 6.7 7.7 20.6
Mandatory targets as of March 1996.. 799.5 840.0 908.5 .......
Changes to outlays under current
laws
Outlays under current laws as of
February 1995...................... 763.2 813.8 873.9 .......
Adjustments for:
Cost of living adjustment........ -1.5 -3.9 -5.5 -10.9
Increases in beneficiaries....... 0.2 0.2 1.1 1.5
Decreases in beneficiaries....... -11.0 -11.9 -15.3 -38.1
Reclassification of Universal
Service Fund..................... 4.3 4.3 4.3 12.9
Changes due to category shifts.... 1.8 2.3 2.1 6.3
Enacted paygo legislation........ * 1.1 1.9 3.1
Other adjustments................ 2.1 2.7 5.1 9.9
-----------------------------------
Total adjustments................. -4.0 -5.2 -6.2 -15.4
Outlays under current laws as of
March 1996......................... 759.2 808.6 867.7 .......
Amount over (+) or under (-) the
current target..................... -40.3 -31.4 -40.8 -112.5
Memorandum:
Initial mandatory targets
(Executive Order 12857).......... 784.7 823.7 887.7 .......
------------------------------------------------------------------------
*$50 million or less
[[Page 210]]
Table 13-1 also shows the major changes in current law estimates since
1996 Budget. Over the three years, current law estimates have declined
by $15.4 billion. Most of this difference is the result of downward
reestimates for Commodity Credit Corporation, Social Security, Earned
Income Tax Credit, Supplementary Security, Income, and Food Stamps
programs.
The Order requires an adjustment to the targets to reflect increases
in estimated beneficiaries. Table 13-2 shows the current estimates of
beneficiaries of major benefit payment programs as well as the level
implicit in the 1996 Budget targets. In six programs the estimates of
beneficiaries have increased. Therefore, the targets have been increased
by applying the percentage change in the number of beneficiaries to the
target level of the program. The largest adjustments are for
Unemployment insurance, Military retirement, and Veterans' pensions. In
total, the targets have been increased by $1.5 billion for the three-
year period because of increases in beneficiary estimates.
An adjustment to the mandatory targets is also required for any
enacted changes in receipts. This allows for tradeoffs between receipt
increases and outlay reductions. In the last year, legislation has not
significantly increased receipts over the three-year period.
The mandatory targets are adjusted for reclassifications of spending.
As a result of review, while scoring the Telecommunications Act of 1996,
the universal service fund of the Federal Communications Commission has
been reclassified as budgetary to more accurately reflect its
governmental nature. Inclusion of the fund's pre-Telecommunications Act
outlays in the budget increases mandatory outlays and the targets by
$4.3 billion each year. In addition, certain Federal-aid highway
projects that are exempt from limitations imposed by the Appropriations
Committee have been reclassified from discretionary to mandatory. This
change increases the mandatory targets by $1.8 billion in 1995, $2.3
billion in 1996, $2.1 billion in 1997. The targets have also been
adjusted for several minor categorical shifts.
Table 13-2. BENEFICIARIES ESTIMATES FOR MAJOR BENEFIT PROGRAMS
(Annual average, in thousands)
----------------------------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
Family education loans:
Level implicit in 1996 Budget target. 5,394 3,898 3,695 NA NA NA NA NA
OMB March 1996 estimate.............. 4,309 3,392 2,918 2,709 2,395 2,453 2,518 2,588
Direct loans:
Level implicit in 1996 Budget target. 1,694 3,451 3,940 NA NA NA NA NA
OMB March 1996 estimate.............. 1,031 2,151 2,773 3,146 3,594 3,678 3,771 3,872
AFDC work programs:
Level implicit in 1996 Budget target. 708 721 727 NA NA NA NA NA
OMB March 1996 estimate\1\........... 641 631 627 624 624 624 NA NA
Foster care and adoption assistance:
Level implicit in 1996 Budget target. 365 392 410 NA NA NA NA NA
OMB March 1996 estimate.............. 368 387 416 436 458 482 503 528
Medicaid:
Level implicit in 1996 Budget target. 36,500 37,715 39,146 NA NA NA NA NA
OMB March 1996 estimate.............. 36,168 37,516 38,674 39,763 40,825 41,808 42,719 43,548
Medicare:
Hospital insurance:
Level implicit in 1996 Budget
target............................. 37,009 37,625 38,206 NA NA NA NA NA
OMB March 1996 estimate............ 36,934 37,528 38,073 38,578 39,054 39,548 40,046 40,554
Supplementary medical insurance:
Level implicit in 1996 Budget
target............................. 35,651 36,244 36,760 NA NA NA NA NA
OMB March 1996 estimate............ 35,498 36,006 36,490 36,923 37,324 37,740 38,163 38,576
Railroad retirement:
Level implicit in 1996 Budget target. 805 783 761 NA NA NA NA NA
OMB March 1996 estimate.............. 799 778 755 731 708 686 664 643
Federal civil service retirement:
Level implicit in 1996 Budget target. 2,297 2,327 2,365 NA NA NA NA NA
OMB March 1996 estimate.............. 2,287 2,324 2,349 2,371 2,391 2,412 2,433 2,459
Military retirement:
Level implicit in 1996 Budget target. 1,805 1,826 1,847 NA NA NA NA NA
OMB March 1996 estimate.............. 1,814 1,833 1,854 1,874 1,893 1,908 1,924 1,939
Unemployment insurance:
Level implicit in 1996 Budget target. 9,000 9,000 9,000 NA NA NA NA NA
OMB March 1996 estimate.............. 8,100 8,950 9,300 9,250 9,190 9,160 9,170 9,180
Food stamps:\2\
Level implicit in 1996 Budget target. 27,314 27,316 27,307 NA NA NA NA NA
OMB March 1996 estimate.............. 26,622 26,139 25,947 26,101 26,250 26,383 26,516 26,650
Child nutrition:
Level implicit in 1996 Budget target. 37,557 38,544 39,499 NA NA NA NA NA
OMB March 1996 estimate.............. 36,060 37,279 38,476 39,494 39,319 41,281 42,050 42,826
Family support: maintenance assistance
(AFDC):\3\
Level implicit in 1996 Budget target. 5,250 5,330 5,410 NA NA NA NA NA
OMB March 1996 estimate.............. 4,866 4,618 4,684 4,750 4,817 4,876 4,935 4,994
[[Page 211]]
Family support: emergency assistance:
Level implicit in 1996 Budget target. NA NA NA NA NA NA NA NA
OMB March 1996 estimate.............. 80 84 87 91 95 98 102 106
Supplemental security income:
Level implicit in 1996 Budget target. 6,333 6,822 7,281 NA NA NA NA NA
OMB March 1996 estimate:
Aged............................... 1,327 1,315 1,295 1,280 1,265 1,255 1,240 1,235
Blind/Disabled..................... 4,743 4,995 5,210 5,405 5,585 5,750 5,910 6,050
-----------------------------------------------------------------------
Total, OMB March 1996 estimate..... 6,070 6,310 6,505 6,685 6,850 7,005 7,150 7,285
Earned income tax credit:
Level implicit in 1996 Budget target. 17,000 17,000 17,005 NA NA NA NA NA
OMB March 1996 estimate.............. 15,271 15,044 15,219 15,431 15,698 15,885 16,127 16,367
Social Security (OASDI):
Old age and survivors insurance:
Level implicit in 1996 Budget
target............................. 37,459 37,821 38,166 NA NA NA NA NA
OMB March 1996 estimate............ 37,309 37,653 38,005 38,335 38,650 38,975 39,308 39,655
Disability insurance:
Level implicit in 1996 Budget
target............................. 5,685 6,050 6,413 NA NA NA NA NA
OMB March 1996 estimate............ 5,656 5,955 6,277 6,588 6,892 7,178 7,456 7,733
Veterans' compensation:
Level implicit in 1996 Budget target. 2,532 2,550 2,557 NA NA NA NA NA
OMB March 1996 estimate.............. 2,533 2,546 2,551 2,551 2,548 2,543 2,538 2,529
Veterans' pensions:
Level implicit in 1996 Budget target. 788 744 706 NA NA NA NA NA
OMB March 1996 estimate.............. 799 763 731 704 682 665 651 641
----------------------------------------------------------------------------------------------------------------
NA = Not Applicable
\1\Midsession estimate as of July 1995. Estimates not available for 2001 and 2002.
\2\Beneficiary estimates do not include Nutrition Assistance Program recipients.
\3\Average number of monthly cases.
During the past year, no reconciliation or emergency mandatory
legislation was enacted into law. Thus, there are no additional
adjustments to the targets required by the Order.
Growth in Mandatory Programs
Table 13-3 shows outlays for mandatory and related programs for the
years 1995 through 2002. Under current law, spending on mandatory
programs including net interest is projected to be $1,102.2 billion in
1997, $61.5 billion more than the 1996 estimate. By 2002, spending for
mandatory programs including net interest is projected to reach $1,423.5
billion.
Table 13-3. OUTLAYS FOR MANDATORY AND RELATED PROGRAMS UNDER CURRENT LAW
(In billions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimate
1995 ---------------------------------------------------------------------- Total
actual 1996 1997 1998 1999 2000 2001 2002 1996-2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
Human resources programs:
Education, training, employment, and social services:
Family education loan................................... 3.5 3.0 2.2 2.0 1.8 1.7 1.8 1.9 14.5
Direct loan............................................. 0.8 0.6 0.7 0.9 1.3 1.5 1.6 1.7 8.2
Social services......................................... 8.8 9.6 9.8 10.2 10.7 11.2 11.8 12.4 75.6
Other................................................... 2.5 1.1 0.8 -0.1 -0.2 -0.3 -0.3 -0.2 0.7
------------------------------------------------------------------------------------------
Subtotal, education, training, employment, and social
services................................................ 15.7 14.3 13.5 12.9 13.5 14.1 14.9 15.8 99.0
Health:
Medicaid................................................ 89.1 94.9 102.3 112.0 121.8 133.2 145.6 159.4 869.0
FEHB and other.......................................... 4.3 4.2 4.5 4.6 4.5 4.9 5.4 5.7 33.9
------------------------------------------------------------------------------------------
Subtotal, health........................................ 93.4 99.1 106.8 116.5 126.3 138.0 151.0 165.1 902.9
Medicare:
Hospital insurance...................................... 113.6 125.5 137.1 149.3 161.9 175.0 188.8 203.1 1,140.6
Supplementary medical insurance......................... 63.5 69.1 76.3 84.8 93.0 102.1 112.5 124.1 661.8
Medicare premiums and collections....................... -20.2 -19.8 -20.3 -22.0 -23.3 -24.3 -25.3 -26.4 -161.5
------------------------------------------------------------------------------------------
Subtotal, medicare...................................... 156.9 174.7 193.1 212.0 231.6 252.8 275.9 300.7 1,640.9
[[Page 212]]
Income security:
General retirement and disability:
Railroad retirement................................... 3.7 4.1 4.2 4.2 4.2 4.3 4.3 4.4 29.7
Other................................................. 1.0 0.5 0.3 0.4 0.4 0.6 0.5 0.6 3.2
------------------------------------------------------------------------------------------
Subtotal, general retirement and disability........... 4.7 4.6 4.4 4.6 4.6 4.9 4.9 5.0 32.9
Federal employee retirement and disability:
Civilian employees retirement......................... 38.8 40.1 42.3 44.3 46.4 48.6 50.9 53.6 326.1
Military retirement................................... 27.8 28.5 29.7 30.8 31.9 32.9 34.0 35.1 222.9
Other................................................. -0.8 -0.7 -0.8 -0.6 -0.6 -0.6 -0.5 -0.5 -4.3
------------------------------------------------------------------------------------------
Subtotal, Federal employees retirement and disability. 65.8 67.8 71.2 74.5 77.7 80.9 84.3 88.2 544.7
Unemployment compensation............................... 21.3 23.7 24.7 25.3 26.1 27.0 28.1 29.2 184.0
Food and nutrition assistance:
Food stamps (incl. Puerto Rico)....................... 25.6 26.3 27.5 28.6 29.6 30.7 32.0 33.3 208.0
Child nutrition programs.............................. 7.5 8.2 8.6 9.2 9.7 10.3 10.8 11.4 68.1
Other................................................. 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 3.1
------------------------------------------------------------------------------------------
Subtotal, food and nutrition assistance............... 33.5 35.0 36.5 38.2 39.8 41.4 43.2 45.1 279.2
Other income security:
Supplemental security incom........................... 24.5 24.5 28.3 30.3 32.1 36.5 33.2 37.7 222.6
Family support payments............................... 17.1 17.4 18.0 18.4 19.1 19.7 20.4 21.1 133.9
Earned income tax credit.............................. 15.2 18.1 19.9 20.7 21.6 22.6 23.5 24.4 150.9
Other................................................. -0.8 -0.9 -1.0 -1.1 -1.3 -1.5 -1.4 -1.5 -8.7
------------------------------------------------------------------------------------------
Subtotal, other income security....................... 56.0 59.1 65.2 68.3 71.4 77.3 75.7 81.6 498.7
------------------------------------------------------------------------------------------
Subtotal, income security............................... 181.3 190.3 202.0 210.9 219.6 231.5 236.2 249.1 1,539.5
Social Security........................................... 333.3 348.1 364.8 383.3 401.7 421.3 441.9 463.5 2,824.7
Veterans' benefits and services:
Compensation\1\.......................................... 14.8 14.1 15.7 16.2 16.5 18.1 16.2 17.8 114.7
Pensions\1\............................................. 3.0 2.8 3.0 3.0 3.5 3.9 3.4 3.8 23.3
Other................................................... 2.0 2.1 2.3 2.3 2.2 2.3 2.3 2.3 15.7
------------------------------------------------------------------------------------------
Subtotal, veterans benefits and services................ 19.9 19.0 20.9 21.4 22.3 24.2 21.9 23.9 153.7
==========================================================================================
Subtotal, human resources programs 800.4 845.5 901.1 957.0 1,015.0 1,082.0 1,141.8 1,218.1 7,160.7
Other programs included in the entitlement target:
Agriculture:
Farm price supports (CCC)\2\............................ 6.0 3.2 3.6 5.1 5.0 4.4 3.8 3.3 28.5
Other................................................... -0.3 0.6 0.1 * * 0.1 0.2 0.2 1.1
------------------------------------------------------------------------------------------
Subtotal, agriculture................................... 5.8 3.8 3.7 5.1 5.0 4.5 4.0 3.5 29.6
Undistributed offsetting receipts:
Employer share, employee retirement....................... -34.4 -33.4 -34.4 -35.2 -36.4 -38.2 -40.0 -42.3 -259.9
Rents and royalties on the Outer Continental Shelf........ -2.4 -2.7 -3.1 -2.6 -2.6 -2.6 -2.6 -2.6 -18.7
Other offsetting receipts: Spectrum auction, privatize Elk
Hills, sale of power marketing administration............. -7.6 -4.2 -1.7 -4.4 ........ ........ ........ ........ -10.3
------------------------------------------------------------------------------------------
Subtotal, undistributed offsetting receipts................ -44.5 -40.3 -39.2 -42.2 -39.0 -40.7 -42.6 -44.9 -288.9
Other functions.............................................. -2.6 -0.4 2.1 -0.1 -0.4 0.8 -* -0.2 1.8
------------------------------------------------------------------------------------------
Subtotal, other programs included in the entitlement target.. -41.2 -37.0 -33.4 -37.2 -34.3 -35.4 -38.6 -41.5 -257.4
------------------------------------------------------------------------------------------
Subtotal, mandatory programs included in the entitlement
target...................................................... 759.2 808.6 867.7 919.8 980.7 1,046.6 1,103.2 1,176.6 6,903.3
Deposit insurance............................................ -17.9 -9.0 -4.6 -1.6 -* -2.0 -1.3 -1.4 -19.9
Net interest:
Interest on the public debt............................... 332.4 344.6 345.8 347.6 352.1 356.8 360.9 367.6 2475.5
Interest received on trust funds.......................... -93.2 -97.6 -100.4 -103.3 -105.5 -109.1 -108.8 -111.4 -736.1
Other interest............................................ -7.1 -5.9 -6.3 -5.7 -6.0 -6.7 -7.4 -7.8 -45.9
------------------------------------------------------------------------------------------
Subtotal net interest........................................ 232.2 241.1 239.1 238.6 240.6 241.1 244.6 248.4 1693.5
------------------------------------------------------------------------------------------
Total, outlays for mandatory and related programs............ 973.5 1,040.7 1,102.2 1,156.9 1,221.2 1,285.7 1,346.6 1,423.5 8,576.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
*$50 million or less.
\1\13 benefit payments are outlayed in 2000. Only 11 benefit payments are outlayed in 1996 and 2001.
\2\Figures reflect the extension of authority for farm programs that was in place in December 1995. However authority for many farm programs expired
after this date. At the time of the 1997 budget preparation, new authority had not been enacted. Therefore under current law, authority for these
programs has reverted back to provisions contained in the 1938 and 1949 Farm Bills. See Chapter 15 for estimates of this authority.
[[Page 213]]
Spending on programs covered by the mandatory targets is projected to
grow from $808.6 billion in 1996 to $1,176.6 billion in 2002, an annual
average rate of 6.5 percent. In percentage terms, the areas of largest
growth are the health entitlements. More than half of the growth in
programs covered by the mandatory targets is in Medicaid and Medicare.
For additional information on the trends in mandatory spending, see
Chapter 15 ``Current services estimates'' in this volume.
Growth in Receipts
Baseline receipts are projected to be $1,501.5 billion in 1997, $73.6
billion more than the 1996 estimate. By 2002, baseline receipts are
projected to reach $1,915.9.0 billion. For additional information on the
trends in baseline receipts, see Chapter 15 ``Current Service
Estimates'' in this volume.
The Order requires a comparison between the current level of receipts
and the levels projected as of the date of enactment of OBRA93
(September 1993 Midsession). As shown in Table 13-4, receipts are higher
than the September 1993 Midsession estimates in each year, by amounts
ranging from $25.0 billion to $65.9 billion. These increases are the net
effect of legislative, administrative and regulatory changes; revisions
in economic assumptions; and technical estimating revisions. Revised
economic assumptions, primarily higher wages and salaries, and corporate
profits, have increased receipts in each year, by amounts ranging from
$17.2 billion to $56.6 billion. Technical revisions, primarily
reflecting collection experience, updated tabulations from tax returns,
and revisions in historical economic data, have increased receipts in
each year except 1996. Regulatory and legislative changes since
September 1993 have also increased receipts in each year.
Table 13-4. COMPARISON OF 1994 MIDSESSION (CBO UPDATED) AND 1996 BUDGET
BASELINE RECEIPTS
(In billions of dollars)
------------------------------------------------------------------------
1995 1996 1997 1998
------------------------------------------------------------------------
1994 Midsession baseline
estimate....................... 1,329.5 1,402.9 1,457.6 1,512.6
Revised economic assumptions:
Individual income taxes...... -0.1 7.6 13.0 19.8
Corporation income taxes..... 13.9 16.5 22.1 28.4
Social insurance taxes and
contributions................ -1.4 0.7 5.2 8.4
Excise taxes................. 0.8 0.9 0.8 0.8
Estate and gift taxes........ 0.2 0.2 0.2 0.3
Customs duties............... 1.0 0.5 1.1 1.4
Federal Reserve deposit of
earnings..................... 2.8 0.2 -1.6 -2.5
Other miscellaneous receipts. ........ ........ ........ ........
---------------------------------------
Subtotal, economic assumptions 17.2 26.6 40.9 56.6
Technical revisions:
Individual income taxes...... -7.7 -10.7 -9.6 -8.2
Corporation income taxes..... 15.4 17.8 22.5 30.3
Social insurance taxes and
contributions................ -5.5 -11.0 -9.4 -12.6
Excise taxes................. 0.3 -4.1 -6.6 -7.0
Estate and gift taxes........ 0.8 0.9 1.0 1.2
Customs duties............... -1.9 -1.3 -0.9 -0.8
Federal Reserve deposit of
earnings..................... 3.1 5.2 5.1 5.4
Other miscellaneous receipts. -0.1 -0.4 -0.4 -0.4
---------------------------------------
Subtotal, technical revisions. 4.4 -3.5 1.8 7.9
Enacted legislation............. 3.9 1.9 1.2 1.4
Administration action\1\........ 0.2 0.1 0.1 0.1
---------------------------------------
Total changes................ 25.7 25.0 43.9 65.9
---------------------------------------
1997 Budget baseline estimate... 1,355.2 1,427.9 1,501.5 1,578.6
------------------------------------------------------------------------
\1\Reflects the effect of regulations affecting hedging transactions.
Comparison of Mandatory Targets and Outlays under Current Laws
As Table 13-1 shows, estimates of spending for programs covered by the
targets under current laws are $40.3 billion below the target for 1995,
$31.4 billion below the target for 1996, and $40.8 billion below the
target for 1997. Over the three year period from 1995-97, projections of
current law spending are $112.5 billion below the targets. While the
targets have increased since the 1995 Budget, current law levels have
decreased creating more room under the targets. As discussed above, the
targets have increased as a result of upward revisions in beneficiary
estimates. Under the Order, decreases in beneficiary estimates, do not
affect the targets. If the caps were adjusted for the decreases, using
the same mechanism applied to increases, the targets would have been
reduced by $38.1 billion over the three years. Current law levels have
decreased reflecting changes in beneficiaries.
[[Page 214]]
Since current law spending is projected to be below the targets, a
special message to reduce direct spending is not required.
Comparison of Mandatory Targets and Presidential Proposals
Enactment of the proposals in the President's budget would change the
levels of the targets and estimated outlays. As shown in Table 13-5,
enactment of the President's revenue proposals would decrease the
mandatory targets by $1.6 billion in 1996 and $11.7 in 1997. This
reduction in revenue is more than offset by the proposed $13.7 billion
decrease in direct spending. The target enforcement procedure allows for
this type of tradeoff between decreases in revenue and decreases in
direct spending. After adjusting the targets to reflect the President's
policy initiatives, spending under the President's budget is $34.8
billion below the target for 1996 and $37.9 billion below the target for
1997. Over the three year period from 1995-97, spending under the
President's proposal is $113.0 billion below the targets.
Table 13-5. MANDATORY TARGETS ASSUMING ENACTMENT OF PRESIDENTIAL
PROPOSALS
(In billions of dollars)
------------------------------------------------------------------------
1995 1996 1997 1995-97
------------------------------------------------------------------------
Mandatory targets
Current mandatory targets....... 799.5 840.0 908.5 ........
Adjustment to targets if the
President's proposals are
enacted:
Tax reduction................ ........ -1.3 -17.6 -18.8
Other revenue proposals...... ........ -0.3 5.8 5.5
---------------------------------------
Total adjustments............ ........ -1.6 -11.7 -13.3
Targets adjusted for
Presidential proposals......... 799.5 838.4 896.8 ........
Proposed outlays for programs
covered by the target
Outlays under current law....... 759.2 808.6 867.7 ........
Presidential proposals........ ........ -4.9 -8.8 -13.7
---------------------------------------
Proposed outlay totals.......... 759.2 803.6 858.9 ........
Amount over (+) or under (-) the
targets........................ -40.3 -34.8 -37.9 -113.0
------------------------------------------------------------------------