Automatic Reductions in Government Spending -- aka Sequestration February 28, 2013We have received many questions in recent days about the budgetary and economic implications of the automatic reductions in government spending that are scheduled to occur under current law (in technical terms, a sequestration). So, we thought it would be helpful to pull together our answers to some of those questions, incorporating information from our most recent economic and budget projections released earlier this month and from CBO’s recent Congressional testimony:
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How Have CBO’s Projections of Spending for Medicare and Medicaid Changed Since the August 2012 Baseline?February 21, 2013In its most recent baseline projections, CBO reduced its estimates of spending for the Medicare and Medicaid programs compared with its estimates in the August 2012 baseline. For the 2013–2022 period, projected spending for those programs is now $382 billion (or 3½ percent) below the agency’s estimates in August 2012.
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CBO Releases New Report: Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October 2012 Through December 2012 |
CBO Testifies on the Budget and Economic Outlook February 15, 2013I testified twice this week about CBO’s latest projections for the economy and the budget—on Tuesday to the Senate Budget Committee, and on Wednesday to the House Budget Committee. In my prepared remarks, I told the Members that our analysis shows that the country continues to face very large economic and budget challenges.
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CBO Releases New Report: Growth in Means-Tested Programs and Tax Credits for Low-Income Households |
CBO Releases New Report: Monthly Budget Review |
Economic Growth Is Likely to Be Slow in 2013 and Pick Up in Later Years February 7, 2013On Tuesday CBO published a new economic forecast in The Budget and Economic Outlook: Fiscal Years 2013-2023. The forecast—reflecting current law—takes into account the recent passage of the American Taxpayer Relief Act of 2012 (Public Law 112-240), which removed a significant amount of the fiscal tightening that had been scheduled to take effect in January 2013.
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Looming Policy Decisions May Have a Substantial Effect on the Budget Outlook February 6, 2013Yesterday CBO released The Budget and Economic Outlook: Fiscal Years 2013 to 2023. In that report, CBO projects that the federal deficit will drop to $845 billion in 2013—its smallest size since 2008. Even so, under current law annual deficits and federal debt will stay at historically high levels relative to the economy through 2023, and lawmakers face key budgetary decisions this year that could have a substantial effect on that budget outlook.
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CBO Releases New Report: The Budget and Economic Outlook: Fiscal Years 2013 to 2023 |
CBO Releases New Report: Macroeconomic Effects of Alternative Budgetary Paths |
