Budget Issues: Incorporating an Investment Component in the Federal
Budget (Letter Report, 11/09/93, GAO/AIMD-94-40).

Although reducing the federal deficit and making wise decisions on
investments that will foster economic growth are the most important
contributions that the federal government can make to a healthy and
growing economy, the current budget structure, with its focus on
short-term goals, does not meet these needs.  If long-term economic
growth is to be increased, the budget needs to focus on long-term
decision-making.  A federal investment budget component could help
Congress and the President make better informed decisions on federal
spending on consumption versus investments for the future. GAO,
recognizing the importance of the deficit to long-term growth, urges
that such a component be established within the context of a unified
budget framework striving to cut the deficit over an appropriate period.
Setting investment targets in the congressional budget resolution could
be a useful and feasible way to implement this concept.  GAO summarized
this report in testimony before Congress; see: Budget Policy: Investment
Budgeting for the Federal Government, by  Paul L. Posner, Director of
Budget Issues, before the Subcommittee on Legislation and National
Security, House Committee on Government Operations.  GAO/T-AIMD-94-54,
Nov. 9, 1993 (22 pages).

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-40
     TITLE:  Budget Issues: Incorporating an Investment Component in the 
             Federal Budget
      DATE:  11/09/93
   SUBJECT:  Investment planning
             Economic development
             Economic growth
             Federal programs
             Budgeting
             Economic policies
             Macroeconomic analysis
             Productivity
             Investments
             Budget decision packages
IDENTIFIER:  Special Supplemental Food Program for Women, Infants, and 
             Children
             WIC
             
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