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 2002-02-27 monographic deposited born digital 19 p. GA 1.13:GAO-02-467T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-467T P0b002ee18038aaf9 f:d02467t DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-02-467T machine generated eng fdlp REPORT GAOREPORTS-GAO-02-467T GAO-02-467T Budget administration Financial management Strategic planning Recession Budget surplus Entitlement programs Economic stabilization Fiscal policies Coast Guard Deepwater Project Hospital Insurance Trust Fund Medicaid Program Medicare Program Social Security Program Supplementary Medical Insurance Program Old Age and Survivors Insurance Trust Fund Testimony A02822 Combating terrorism and ensuring the nation's homeland security have created urgent claims on our attention and on the federal budget. Although there are indications that an economic recovery is underway, the recession that began last spring has had real consequences for the budget. At the same time, the fiscal pressures created by the retirement of the baby boom generation and rising health care costs remain the same. The surpluses also put the nation in a stronger position to respond to the events of September 11 and to the economic slowdown than would otherwise have been the case. The nation's commitment to surpluses will be tested. A return to surplus will require sustained discipline and difficult choices. Because the longer-term outlook is driven in large part by known demographic trends the outlook 20 years from now is surer than the forecast for the next few years. The message of GAO's updated simulations remains the same as last year--absent structural changes in entitlement programs for the elderly, in the long term persistent deficits and escalating debt will overwhelm the budget. Both longer-term and new commitments undertaken after September 11 sharpen the need for competing claims and new priorities. A fundamental review of existing programs and activities is necessary both to increase fiscal flexibility and to make government fit the modern world. Stated differently, there is a need to consider the proper role of the federal government in the 21st century and how the government should do business in the future. The fiscal benchmarks and rules that moved the country from deficit to surplus expire this fiscal year. Any successor system should include a debate about reprioritization today and a better understanding of the long-term implications of different policy choices. There are many things that the nation may be able to afford today but may not be sustainable in the future. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-467T/html/GAOREPORTS-GAO-02-467T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-467T/pdf/GAOREPORTS-GAO-02-467T.pdf GAO-02-467T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-467T Testimony GAO-02-467T; Budget Issues: Long-Term Fiscal Challenges; Budget administration Financial management Strategic planning Recession Budget surplus Entitlement programs Economic stabilization Fiscal policies Coast Guard Deepwater Project Hospital Insurance Trust Fund Medicaid Program Medicare Program Social Security Program Supplementary Medical Insurance Program Old Age and Survivors Insurance Trust Fund