United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-07-19 monographic deposited born digital 17 p. GA 1.13:GAO-01-991T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-991T P0b002ee18039c045 f:d01991t DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-01-991T machine generated eng fdlp REPORT GAOREPORTS-GAO-01-991T GAO-01-991T Future budget projections Budget deficit Budget surplus Fiscal policies Macroeconomic analysis Testimony A01419

This testimony discusses issues related to the budget process established by the Budget Enforcement Act (BEA), which will expire in fiscal year 2002. Because the goal of achieving zero deficit has been accomplished, the focus of the nation's budget process needs to change. Now, instead of aiming for a zero deficit, the goal shifts to how to allocate surpluses among debt reduction, spending increases, and tax cuts. Also, the budget process should be designed to avoid what has been described as the year-end "train wreck". A year-end "train wreck" is the result of failing to reach agreement--or at least a compromise acceptable to all parties--earlier in the year. Although it is possible that reaching agreement on some broad parameters early on could facilitate a smoother process, it is not clear that such an agreement will always prevent gridlock--it may just come earlier. Two ideas that have been proposed to avert the year-end disruption caused by an inability to reach agreement on funding the government include joint budget resolutions and biennial budgeting. In discussing alternatives for improving the budget process, there is a broad consensus among observers and budget analysts that the spending constraints established by the BEA is necessary even with the advent of actual and projected surpluses. Such constraints include (1) extending the discretionary spending caps, (2) extending the pay-as-you-go mechanism, and (3) creating a trigger device or set of rules specifically designed to deal with the uncertainty of budget projections. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-991T/html/GAOREPORTS-GAO-01-991T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-991T/pdf/GAOREPORTS-GAO-01-991T.pdf GAO-01-991T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-991T Testimony GAO-01-991T; Budget Process: Considerations for Updating the Budget Enforcement Act; Future budget projections Budget deficit Budget surplus Fiscal policies Macroeconomic analysis Title 2 Section 632 2 U.S.C. 632