Accession Number PB2013-102664
Title Budget Control Act of 2011: Effects on Spending Levels and the Budget Deficit. October 5, 2011.
Publication Date Oct 2011
Media Count 33p
Personal Author M. Labonte M. R. Levit
Abstract The Budget Control Act of 2011 (BCA) was signed into law by President Obama on August 2, 2011 (P.L. 112-25). In addition to increasing the debt limit, the BCA contained a variety of measures intended to reduce the deficit by at least $2.1 trillion over the FY2012-FY2021 period. These included $917 billion in savings from statutory caps on discretionary spending and the establishment of a Joint Select Committee on Deficit Reduction to identify further budgetary savings of at least $1.2 trillion over 10 years. The BCA discretionary spending caps are projected to result in $917 billion in deficit reduction over the FY2012-FY2021 period. Several adjustments to the caps are permitted, including for spending on Overseas Contingency Operations and emergencies. The precise programmatic impact of these reductions in discretionary spending will be determined in the annual appropriations process. Under the Congressional Budget Offices (CBOs) August 2011 baseline, which incorporates the effects of the BCA, the discretionary spending caps result in a decline in spending in nominal dollar terms in FY2012 and FY2013. In nominal terms, discretionary spending does not regain its FY2011 level until FY2018. Discretionary spending has fallen in nominal terms only three times since FY1962, most recently in FY1996. Discretionary spending under the caps is projected to decline from 9.0% of GDP in FY2011 to 6.2% of gross domestic product (GDP) in FY2021. Since FY1962, the first year for which data are available, discretionary spending has only been that low in one other year (FY1999).
Keywords Budget control
Budget deficit
Budgets
Debt limit
Deficit reduction
Spending
Spending levels


 
Source Agency Congressional Research Service
NTIS Subject Category 70B - Management Practice
43A - Finance
Corporate Author Congressional Research Service, Washington, DC.
Document Type Technical report
Title Note N/A
NTIS Issue Number 1305
Contract Number N/A

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