Budget Policy: Investment Budgeting for the Federal Government
(Testimony, 11/09/93, GAO/T-AIMD-94-54).

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.

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

 REPORTNUM:  T-AIMD-94-54
     TITLE:  Budget Policy: Investment Budgeting for the Federal 
             Government
      DATE:  11/09/93
   SUBJECT:  Future budget projections
             Economic growth
             Investment planning
             Fiscal policies
             Budget outlays
             Economic analysis
             Budget deficit
             Current policy budgets
             Deficit reduction
             Deficit financing

             
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