Restoring Balance:

A budget proposal for fiscal year 2012

that balances the budget and encourages
economic growth


Senator Pat Toomey



May 10, 2011

1
The Problem: Chronic Deficits

The United States has entered a new period in which sustained budget deficits have become a
fact of modern American politics. Our budget deficits are surpassed only by those accumulated
during World War II, as a percentage of the gross domestic product. 1 Yet unlike the temporary
deficits that resulted from emergency efforts to win the war, the deficits of the late 20th and early
21st centuries have persisted year after year and reflect decisions made by Congress regarding
the regular operations of government.

The period beginning in the early 1970s, when the modern budget process was first
implemented, and ending in 1997, when Congress balanced the budget, represents the longest
period of consecutive deficits on record. Moreover, the period beginning in 2002, when deficits
returned after four years of surpluses, appears on track to surpass its predecessor.2 Indeed,
deficits that far exceed those accumulated over the last 25 years are projected to continue well
into the future. Such forecasts have led some to label the current period the “age of deficits.”

The persistence of such deficits and the recent, dramatic increases in their size are indications
that the nation is currently on an unsustainable fiscal path. The current path is “unsustainable”
because, absent fundamental spending reforms, these deficits will only grow both in absolute
terms and, more problematically, as a percentage of GDP. In addition, the debt that results from
annual deficits will increasingly cause slower economic growth, higher taxes and less security.
Increased government spending means a reduction in the amount of private investment and
higher taxes on the American people, which leads to a lower quality of life for all. Massive
budget deficits will also eventually reduce the resources available for national defense and
securing the homeland.

A continuation of the current fiscal policy increases the possibility of another crisis, but this time
it may be much worse than the great recession in 2008. On the current trajectory, a fiscal crisis
would likely be accompanied by a collapse in the value of the dollar, a dramatic increase in
inflation and interest rates, and perhaps even a failed Treasury auction as lenders lose confidence
in the creditworthiness of the United States. Such events would seriously damage our economy
and would destroy jobs.

The current situation is a result of a massive increase in government spending over the last
decade. This year, government spending totaled 24 percent of GDP, twice the level of the New
Deal when the government took dramatic steps in a failed attempt to end the Great Depression.
Even more troubling, total federal spending has doubled in the 10 years since 2000, leading to
ever-increasing annual budget deficits.

1
In current dollars, the highest war-time deficit was $54.6 billion (30.3 percent of GDP). The total amount
of deficit spending from 1941 to 1945 was $175.2 billion. Deficits as a percentage of GDP during this period ranged
from 4.3 percent in 1941 to 30.3 percent in 1943 and 21.5 percent in 1945. In contrast, the deficit in 2009 was $1.4
trillion (9.9 percent of GDP). The total amount of deficit spending from 2005 to 2009 was $2.598 trillion, and
deficits as a percentage of GDP during this period ranged from 2.6 percent in 2005 to 9.9 percent in 2009.

2
For example, the deficit totaled $248 billion in 2006, approximately 1.9 percent of GDP. In
2007, the deficit fell to $162 billion, or 1.2 percent of GDP. However, this number increased
significantly in 2010 and 2011, when the deficit represented 10 percent and 9 percent of GDP
respectively. This year, the annual deficit is projected to total an astounding $1.4 trillion. Annual
deficits add up to the total debt of the U.S. government. In 1988, publicly-held debt totaled 41
percent of GDP. The total debt of the government remained fairly stable through 2008, when it
amounted to 40 percent of GDP. Yet today, just two short years later, total publicly-held debt
amounts to 64 percent of GDP, and it is on track to represent 69 percent of GDP by the end of
the fiscal year. Most troubling, we are on track to surpass a debt-to-GDP ratio of 100 percent
soon.

The consequences of deficits of this size and the resulting mountain of debt are very real. The
cost of debt service alone will crowd out other spending in the federal budget. Today, interest
payments on the debt amount to approximately 6 percent of total spending, yet this number is
projected to rise considerably. In the president’s budget, interest payments rise to 16 percent of
all spending by 2021, despite several unrealistically optimistic projections, making it the fastest-
growing line item in the federal budget.

The corresponding level of government borrowing crowds out private investment and ultimately
slows and reduces economic growth. To put this in to perspective, Greece ran deficits of 13.6
percent of GDP and carried a debt load of 110 percent of GDP in 2009. That is not too far from
where we are now – but no one would suggest that the United States should follow Greece’s
lead.

The Solution: Restore Balance

A budget is a governing document; it represents the priorities and governing agenda of the
Congress. As a result, the budget process is central to congressional decision making.

The bad news is that Congress has chosen to run deficits for 33 of the last 36 years. The good
news is that these deficits represent a political, rather than an economic, problem, and Congress
is quite capable of finding a solution. Congress did just that for four years from 1998 to 2001.
During this period, Congress successfully balanced the budget and transformed regular deficits
into recurring surpluses. Put simply, deficits are not inevitable; they can be stopped.

Yet the fact remains that Congress has chosen not to make balanced budgets a priority. The
return of deficit spending in 2002 and the growing regularity of trillion-dollar deficits in the
years after 2008 are particularly perplexing given the apparent bipartisan support for reducing
the deficit and imposing some degree of fiscal discipline. Moreover, public opinion has been
decidedly against deficit spending in recent years.

Despite the public demand for fiscal responsibility, Congress and the president have recently
made a bad situation worse. If past efforts have not worked, then Congress must change the way
it approaches the problem and set a goal that is worthy of the sacrifices needed to meet it. In
1997, adopting a goal of zero deficits ultimately led to the first balanced budget in almost 30
years. It is unlikely that the American people will ever fully support the reductions in

3
government spending necessary to stabilize deficits at 3 percent of GDP or to stabilize the debt at
60 percent of GDP. A balanced budget goal counterintuitively makes putting the nation on a
sustainable fiscal path easier because it provides a goal that an overwhelming majority of
Americans would like to attain.

Restoring balance entails two distinct, but related, paths: near-term (discretionary and non-
Medicare and Social Security entitlement spending) and long-term (Medicare and Social
Security). The first step must be to reduce discretionary spending and non-Medicare and Social
Security spending. This category of expenditures has been the primary driver of deficits over the
last decade, and continuing to spend at such high rates precludes an effort to tackle the long-term
challenges they present.

While Social Security, Medicare and Medicaid require structural reforms soon, it is neither
necessary – nor politically feasible – to take them on all at once. Focusing on just the current 10-
year budget window, this budget makes no changes to Social Security. Changes to Medicare are
limited to restoring the fictitious and unspecified cuts projected in the president’s budget. This
budget calls for block-granting Medicaid funding at reduced levels to the states while providing
them the flexibility to devise their own systems for providing health care to the poor.

Senator Toomey’s Budget

Overview

This budget balances by fiscal year 2020 and achieves a modest surplus in fiscal year 2021.

Deficits, Balanced Budget vs.

Obama Budget
1,800
1,600
1,400
1,200
($ billion)

1,000
800
600
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Balanced Budget Obama (CBO) Obama (OMB)

4
With this surplus, we can finally begin the long overdue process of paying down our national
debt.

Publicly Held Debt, Balanced Budget

vs. Obama Budget
25,000

20,000

15,000
($ billions)

10,000

5,000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Balanced Budget Obama (CBO) Obama (OMB)

This budget reduces publicly-held debt $4.9 trillion below the levels projected in the president’s
plan.3 Accordingly, this budget reduces publicly held debt to less than 55 percent of GDP by
2021 and lowers total spending to 18.4 percent of GDP.

Spending

This budget spends approximately 3 percent less than the House-passed budget and about 16
percent less than the president’s budget over ten years.

3
This figure is a comparison of deficits accumulated over ten years in the Toomey budget against deficits in the
OMB’s estimate of the President’s budget. The Congressional Budget Office has predicted that Obama’s budget will
accumulate nearly $9.5 trillion in new deficits, which is about $7.1 trillion more than the Toomey budget.

5
 Federal Spending, Balanced Budget
vs. Obama Budget
6,000

5,000

4,000
($ billions)

3,000

2,000

1,000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Balanced Budget Obama (CBO) Obama (OMB)

Medicare

Every year, Congress pretends that doctors will take a massive pay cut in order to artificially
deflate the cost of Medicare and make future deficits and spending appear smaller. This budget
acknowledges that Congress will, and should, reform the broken Sustainable Growth Rate. The
full ten-year $300 billion cost of fixing the SGR is incorporated into the cost of Medicare. While
savings are achieved by adopting medical malpractice reform, honestly accounting for the full
cost of reforming the SGR results in Medicare expenditures that are higher than the President’s
budget or the CBO baseline.

Medicaid

This budget promotes flexibility by implementing a block-grant program to the states. To hold
down costs, it calls for the gradual reduction in Medicaid spending to $14 billion more than pre-
stimulus levels (FY 2008 level) by 2019. These levels represent a more accurate baseline for
future Medicaid spending, as they do not reflect higher program enrollees as a result of the
economic downturn in 2009 and the increased federal matching percentages contained in the
stimulus. Both of these events artificially and temporarily increased Medicaid spending. The
steps taken in this budget would keep total Medicaid spending above the 2000 level, adjusted for
population growth and inflation, for the entire 10-year period.

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Non-Defense Discretionary

This budget reduces non-defense discretionary spending to 2006 levels ($435 billion) in 2012. It
then freezes this category of spending for the subsequent six years. Future increases in non-
defense discretionary spending are indexed to the consumer price index.

Defense

Like the plans presented by the president and adopted by the House, this budget implements the
savings identified by Defense Secretary Robert Gates to slow the growth of defense spending
without compromising America’s security. However, it differs from both approaches by
assuming a full withdrawal from Iraq and Afghanistan by 2018. Any future expenditures of
supplemental war spending after this point will be contingent on security needs and must be
offset with spending reductions elsewhere for in the budget.

Other Mandatory Spending

This budget gradually reduces other mandatory spending (excluding Social Security, Medicare
and Medicaid) to slightly more than 2007 levels by 2014. After 2014, spending on these
programs increases each year. Among its policy assumptions, this budget calls for the reform of
welfare programs by setting fixed annual spending caps.

Economic Assumptions/Revenue

Economic Assumptions

This budget is based on conservative nominal GDP growth assumptions as calculated by the
Global Insight model, a macroeconomic forecasting model widely used in the private sector and
throughout government, including by the Congressional Budget Office for various purposes. The
House budget uses an even more conservative macroeconomic model from CBO that predicts
average nominal GDP growth of 4.75 percent, while the president’s budget is based on average
nominal forecasts of 5.05 percent GDP growth.

The Global Insight macroeconomic model used in this budget predicts average nominal GDP
growth of 4.84 percent. The modestly stronger GDP growth in this budget very likely understates
the positive impact of its economic policies and tax reform. Reducing spending, putting the
government on a sustainable fiscal path and balancing the budget, all while significantly
lowering marginal income tax rates, would likely result in a record, sustained surge in economic
growth.

There are historical precedents for departing from CBO baseline economic assumptions. For
example, congressional budget resolutions in 1988 through 1991 and 2003 used higher GDP
growth numbers based on administration figures. Budget resolutions during the 1996-1998
period used negotiated estimates.

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Within a historical context, the economic growth estimates used by this budget are very cautious.
The policies contained in this budget will yield average real economic growth rates of 3.05
percent over the next decade. In the past, post-recession recovery periods have seen real GDP
growth of about 4.2 percent.

Tax Policy

This budget promotes pro-growth economic policies that will create jobs and prosperity by
simplifying the tax code. Specifically, this plan calls for the consolidation of the current six
personal income tax brackets into three brackets. It also seeks to lower marginal rates and
eliminate special-interest tax loopholes and deductions. Additionally, it proposes a reduction in
the corporate tax rate from 35 percent to 25 percent. Such pro-growth tax reform will encourage
economic growth and will create jobs.

These tax changes will be revenue neutral when scored statically, but in fact, will help generate
strong economic growth, which will in turn yield surging tax revenue.

In an effort to protect millions of American taxpayers from the alternative minimum tax (AMT),
this budget calls for the AMT to be indexed for inflation. It moves us to a territorial tax system
so we will no longer hinder economic growth by subjecting overseas profits of American
corporate subsidiaries to double taxation. Taken together, these changes will return revenue to
18.5 percent of GDP – well within the historical norm – and allow the federal government to
fund essential programs while simultaneously fostering economic growth.

Balanced Budget: Spending and

Revenues as % of GDP
26.0%
24.0%
22.0%
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenue (% GDP) Outlays (% GDP)

8
 Fiscal Year 2012 Budget Resolution by Function

OVERVIEW 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
Revenue 2,230 2,558 2,964 3,216 3,391 3,524 3,736 3,916 4,108 4,325 4,566 36,304
As % of GDP 14.8% 16.1% 17.7% 18.3% 18.3% 18.1% 18.4% 18.4% 18.4% 18.5% 18.7%

Outlays 3,625 3,477 3,485 3,508 3,623 3,765 3,853 3,955 4,140 4,302 4,493 38,602
As % of GDP 24.0% 21.8% 20.8% 19.9% 19.6% 19.4% 19.0% 18.6% 18.6% 18.4% 18.4%

Deficits (1,395) (919) (521) (291) (233) (241) (117) (38) (32) 23 73 (2,298)
As % of GDP -9.2% -5.8% -3.1% -1.7% -1.3% -1.2% -0.6% -0.2% -0.1% 0.1% 0.3%

Debt held by public 10,363 11,353 11,975 12,358 12,682 13,002 13,188 13,284 13,355 13,358 13,290 13,290
As % of GDP 68.7% 71.2% 71.5% 70.3% 68.5% 66.9% 64.9% 62.4% 60.0% 57.3% 54.5%

Debt Subject to Limit 14,984 16,137 16,928 17,501 18,047 18,611 19,058 19,435 19,774 20,045 20,264 20,264

GDP 15,094 15,936 16,738 17,585 18,523 19,430 20,331 21,275 22,275 23,326 24,393 199,812

TOTALS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
Total Revenue 2,230 2,558 2,964 3,216 3,391 3,524 3,736 3,916 4,108 4,325 4,566 36,304
On-Budget 1,664 1,891 2,232 2,447 2,579 2,669 2,840 2,979 3,128 3,303 3,499 27,567
Off-Budget 566 667 732 769 811 854 896 937 980 1,022 1,067 8,736

Total Spending BA 3,589 3,385 3,410 3,506 3,648 3,802 3,906 4,019 4,191 4,359 4,553 38,779
TO 3,625 3,477 3,485 3,508 3,623 3,765 3,853 3,955 4,140 4,302 4,493 38,602

On-budget BA 3,089 2,801 2,763 2,822 2,925 3,039 3,097 3,161 3,281 3,391 3,526 30,804
TO 3,128 2,896 2,842 2,827 2,905 3,006 3,049 3,102 3,235 3,341 3,472 30,675

Off-budget BA 500 584 647 684 723 764 809 858 911 968 1,027 7,975
TO 497 581 643 680 719 759 804 853 905 962 1,021 7,926

Deficits (1,395) (919) (521) (291) (233) (241) (117) (38) (32) 23 73 (2,298)
Deficit (on-budget) (1,463) (1,005) (611) (381) (325) (337) (209) (122) (107) (38) 27 (3,108)
Deficit (off-budget) 69 86 89 89 93 95 92 84 75 61 46 810

9
DISCRETIONARY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
All Discretionary Spending BA 1,226.6 1,137.4 1,076.5 1,094.5 1,106.8 1,100.6 1,088.0 1,093.7 1,107.5 1,119.4 1,152.7 11,077
TO 1,364.5 1,277.4 1,203.2 1,160.8 1,149.1 1,133.4 1,110.8 1,109.7 1,128.1 1,139.8 1,171.7 11,584

On-budget BA 1,220.6 1,131.6 1,070.8 1,088.8 1,101.0 1,094.9 1,082.2 1,087.7 1,101.3 1,113.1 1,146.3 11,018
TO 1,358.5 1,271.4 1,197.3 1,154.9 1,143.2 1,127.5 1,104.8 1,103.7 1,121.9 1,133.5 1,165.2 11,523

Off-budget BA 6.0 5.8 5.8 5.8 5.8 5.8 5.8 6.0 6.1 6.3 6.4 59
TO 6.0 5.9 5.9 5.9 5.9 5.9 5.9 6.0 6.2 6.3 6.5 60

Defense (050 + 970) BA 711.5 702.3 643.5 659.5 671.9 665.6 655.0 658.3 667.0 671.0 695.0 6,689
TO 710.4 704.7 683.2 665.0 666.2 659.1 644.5 642.8 657.4 663.6 680.4 6,667

Non-Defense BA 515.1 435.0 433.0 435.0 434.9 435.0 433.1 435.4 440.5 448.4 457.7 4,388
TO 654.1 572.7 520.0 495.7 482.9 474.2 466.3 466.9 470.7 476.2 491.2 4,917

MANDATORY SPENDING 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
All Mandatory BA 2,362.6 2,258.3 2,344.5 2,417.4 2,542.5 2,702.9 2,818.7 2,926.2 3,085.1 3,240.5 3,401.6 27,737.8
TO 2,260.3 2,210.7 2,293.2 2,353.0 2,475.4 2,632.8 2,743.7 2,846.1 3,013.2 3,163.8 3,322.0 27,053.9

On-budget BA 1,868.8 1,680.4 1,703.6 1,739.1 1,825.3 1,945.0 2,015.5 2,073.9 2,180.6 2,278.6 2,380.8 19,822.8
TO 1,769.3 1,636.0 1,655.8 1,678.5 1,762.5 1,879.6 1,945.7 1,999.3 2,114.5 2,208.3 2,307.6 19,187.8

Off-budget BA 493.8 577.9 640.9 678.3 717.2 757.9 803.2 852.3 904.5 961.9 1,020.9 7,915.1
TO 491.0 574.7 637.4 674.5 712.9 753.3 798.0 846.8 898.7 955.5 1,014.4 7,866.1

ASSET SALES 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
Sale of land, underutilized BA 0 -11 -11 -6 -1 -1 -1 -1 -1 -1 -1 -36
buildings, property TO 0 -11 -11 -6 -1 -1 -1 -1 -1 -1 -1 -36

Note: BA stands for Budget authority

TO: stands for total outlays.

10
MANDATORY FUNCTIONS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
(050) National Defense BA 6.1 6.8 6.8 6.9 7.0 7.1 7.2 7.4 7.6 7.8 8.0 72.6
TO 6.1 6.8 6.7 6.8 7.0 7.1 7.3 7.5 7.6 7.8 8.0 72.5

(150) International Affairs BA 5.9 4.2 3.3 -0.6 -2.0 -3.0 -1.4 -0.4 -0.4 -0.3 -0.3 -1.0
TO -4.7 -2.9 -1.0 -0.8 -0.9 -0.6 -0.2 -0.2 -1.8 -2.9 -2.9 -14.2

(250) General Science, BA 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Space, and Technology TO 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2

(270) Energy BA 2.3 -0.8 -0.8 -0.9 -1.4 -1.4 -1.5 -1.5 -1.6 -1.6 -1.6 -13.1
TO 0.7 -1.8 -1.8 -1.8 -2.2 -2.2 -2.1 -2.1 -2.3 -2.3 -2.3 -20.8

(300) Natural Resources and BA 2.1 -1.3 -4.3 -4.4 -4.5 -4.7 -4.8 -4.5 -4.9 -4.9 -5.0 -43.3
the Environment TO 2.2 -1.1 -3.9 -4.0 -4.2 -4.4 -4.6 -4.4 -4.7 -4.8 -5.0 -41.1

(350) Agriculture BA 21.6 7.9 7.7 7.7 7.8 7.9 8.0 8.1 8.3 8.4 8.5 80.2
TO 15.2 8.0 8.2 7.7 7.7 7.8 7.9 8.0 8.1 8.2 8.3 79.8

(370) Commerce and BA 0.3 19.1 13.0 10.3 9.1 8.3 6.9 5.7 5.2 4.6 4.8 86.9
Housing Credit TO -10.4 11.5 4.2 -11.3 -14.5 -17.8 -19.1 -22.7 -14.9 -16.0 -17.4 -118.0

(370) On-budget BA -3.2 18.4 13.3 10.4 9.2 8.4 7.1 5.7 5.2 4.6 4.8 87.0
TO -13.9 10.8 4.5 -11.2 -14.4 -17.7 -18.9 -22.7 -14.9 -16.0 -17.4 -117.9

(370) Off-budget BA 3.5 0.7 -0.3 -0.1 -0.1 -0.1 -0.2 0.0 0.0 0.0 0.0 -0.1
TO 3.5 0.7 -0.3 -0.1 -0.1 -0.1 -0.2 0.0 0.0 0.0 0.0 -0.1

(400) Transportation BA 58.3 36.6 38.7 39.9 41.1 41.1 41.1 42.1 42.1 42.1 42.2 406.9
TO 2.3 2.2 2.3 2.6 2.7 2.8 2.8 2.8 2.8 2.8 2.8 26.5

(450) Community and BA 3.4 -0.2 -0.1 -0.1 -0.1 -0.1 -0.1 -0.2 -0.2 -0.2 -0.2 -1.5
Regional Development TO 0.8 -0.2 -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 -2.6

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MANDATORY FUNCTIONS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
(500) Education, Training, BA -20.5 -10.2 -12.7 -10.6 -6.8 -2.7 -2.4 -5.0 -6.4 -6.7 -7.1 -70.6
Employment, Services TO -16.2 -4.0 -8.7 -9.6 -6.1 -2.5 -1.9 -3.7 -4.4 -4.8 -5.6 -51.2

(550) Health BA 326.2 287.9 292.1 279.2 273.7 262.5 262.9 257.6 253.4 257.1 271.8 2,698.1
TO 308.9 287.5 291.8 278.5 273.5 262.1 262.7 256.9 253.3 256.8 271.4 2,694.4

(570) Medicare BA 485.5 482.9 525.8 555.8 580.4 630.0 652.9 678.1 740.1 795.7 853.6 6,495.3
TO 485.2 482.7 525.6 555.7 580.2 629.9 652.8 677.9 740.0 795.6 853.5 6,493.9

(600) Income Security BA 530.6 420.4 377.2 327.4 328.8 335.4 335.9 338.8 349.7 356.5 366.9 3,536.9
TO 533.8 419.0 375.2 326.2 327.2 333.1 329.8 331.9 343.5 348.1 357.7 3,491.7

(650) Social Security BA 729.6 763.6 802.2 845.2 892.1 943.2 1,000.5 1,063.0 1,129.5 1,200.2 1,272.1 9,911.6
TO 726.8 760.4 798.6 841.4 887.8 938.5 995.3 1,057.6 1,123.6 1,193.7 1,265.6 9,862.6

(650) On-budget BA 106.5 54.4 29.1 32.7 36.3 40.2 44.3 48.7 53.5 58.6 64.1 461.8
TO 106.5 54.4 29.1 32.7 36.3 40.2 44.3 48.7 53.5 58.6 64.1 461.8

(650) Off-budget BA 623.1 709.1 773.1 812.5 855.9 903.0 956.3 1,014.3 1,076.0 1,141.6 1,208.0 9,449.8
TO 620.3 705.9 769.5 808.7 851.6 898.4 951.1 1,008.8 1,070.1 1,135.2 1,201.5 9,400.9

(700) Veterans Benefits and BA 72.5 69.4 69.1 71.3 73.3 80.5 77.3 74.2 81.6 83.8 86.1 766.7
Services TO 72.5 69.3 69.0 71.3 73.3 80.5 77.3 74.2 81.6 83.8 86.1 766.3

(750) Administration of BA 2.3 3.1 1.8 1.6 1.4 3.4 1.6 1.4 1.4 3.3 4.2 23.2
Justice TO 2.6 2.8 2.4 1.8 1.4 3.4 1.6 1.4 1.4 3.3 4.2 23.6

(800) General Government BA 10.0 6.6 6.0 6.0 6.0 6.1 6.1 6.1 6.3 6.2 6.3 61.6
TO 8.4 8.2 6.0 6.0 6.0 6.1 6.1 6.1 6.3 6.2 6.3 63.2

(950) Undistributed BA -86.9 -93.1 -96.2 -98.3 -102.3 -104.4 -110.5 -117.1 -122.9 -127.8 -133.3 -1,105.8
Offsetting Receipts TO -86.9 -93.1 -96.2 -98.3 -102.3 -104.4 -110.5 -117.1 -122.9 -127.8 -133.3 -1,105.8

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MANDATORY FUNCTIONS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
(950) On-budget BA -71.6 -77.9 -80.3 -81.8 -84.9 -85.9 -91.2 -97.1 -101.7 -105.6 -110.2 -916.7
TO -71.6 -77.9 -80.3 -81.8 -84.9 -85.9 -91.2 -97.1 -101.7 -105.6 -110.2 -916.7

(950) Off-budget BA -15.3 -15.2 -15.8 -16.5 -17.4 -18.4 -19.2 -20.0 -21.1 -22.1 -23.1 -189.0
TO -15.3 -15.2 -15.8 -16.5 -17.4 -18.4 -19.2 -20.0 -21.1 -22.1 -23.1 -189.0

(900) Net Interest BA 213.0 255.4 314.8 381.0 438.8 493.7 538.8 572.2 596.2 616.0 624.8 4,831.8
TO 213.0 255.4 314.8 381.0 438.8 493.7 538.8 572.2 596.2 616.0 624.8 4,831.8

(900) On-budget BA 330.5 372.1 430.8 498.6 560.0 620.3 672.4 714.2 746.5 773.6 788.8 6,177.4
TO 330.5 372.1 430.8 498.6 560.0 620.3 672.4 714.2 746.5 773.6 788.8 6,177.4

(900) Off-budget BA -117.5 -116.7 -116.0 -117.6 -121.2 -126.6 -133.6 -142.0 -150.3 -157.6 -164.0 -1,345.6
TO -117.5 -116.7 -116.0 -117.6 -121.2 -126.6 -133.6 -142.0 -150.3 -157.6 -164.0 -1,345.6

DISCRETIONARY SPENDING 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
All Discretionary Spending BA 1,226.6 1,137.4 1,076.5 1,094.5 1,106.8 1,100.6 1,088.0 1,093.7 1,107.5 1,119.4 1,152.7 12,303.7
TO 1,364.5 1,277.4 1,203.2 1,160.8 1,149.1 1,133.4 1,110.8 1,109.7 1,128.1 1,139.8 1,171.7 12,948.3

On-budget BA 1,220.6 1,131.6 1,070.8 1,088.8 1,101.0 1,094.9 1,082.2 1,087.7 1,101.3 1,113.1 1,146.3 12,238.2
TO 1,358.5 1,271.4 1,197.3 1,154.9 1,143.2 1,127.5 1,104.8 1,103.7 1,121.9 1,133.5 1,165.2 12,881.9

Off-budget BA 6.0 5.8 5.8 5.8 5.8 5.8 5.8 6.0 6.1 6.3 6.4 65.5
TO 6.0 5.9 5.9 5.9 5.9 5.9 5.9 6.0 6.2 6.3 6.5 66.4

(050 + 970) Defense BA 711.5 702.3 643.5 659.5 671.9 665.6 655.0 658.3 667.0 671.0 695.0 7,400.6
TO 710.4 704.7 683.2 665.0 666.2 659.1 644.5 642.8 657.4 663.6 680.4 7,377.3

Non-Defense BA 515.1 435.0 433.0 435.0 434.9 435.0 433.1 435.4 440.5 448.4 457.7 4,903.1
TO 654.1 572.7 520.0 495.7 482.9 474.2 466.3 466.9 470.7 476.2 491.2 5,571.0

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DISCRETIONARY FUNCTIONS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
(050) National Defense BA 555.1 575.8 593.5 609.5 621.9 634.9 646.5 658.3 667.0 671.0 695.0 6,373.3
TO 634.3 586.8 590.5 600.1 611.8 628.4 636.0 642.8 657.4 663.6 680.4 6,297.8

(150) International Affairs BA 52.3 29.0 28.0 28.0 26.9 25.9 23.4 23.4 23.1 23.1 25.0 255.8
TO 50.7 35.2 31.1 28.1 27.0 26.0 23.6 23.5 23.2 23.1 23.1 263.9

(250) General Science, BA 30.4 24.9 26.9 27.2 27.2 27.2 27.1 27.1 28.1 29.6 29.6 275.0
Space, and Technology TO 31.6 26.4 27.6 27.6 27.3 27.4 27.2 27.2 27.6 27.9 28.2 274.4

(270) Energy BA 4.5 1.9 1.8 1.8 1.8 1.8 1.8 1.8 1.9 1.9 1.9 18.3
TO 12.8 12.0 8.9 6.0 2.8 1.9 1.9 1.9 1.9 1.9 1.9 40.9

(300) Natural Resources and BA 33.0 28.8 27.2 25.6 25.4 24.1 22.3 22.0 22.0 22.0 22.0 241.5
the Environment TO 43.3 34.1 31.0 29.1 25.7 24.2 22.3 22.1 22.0 22.0 22.0 254.5

(350) Agriculture BA 5.8 4.9 4.9 4.9 4.9 4.9 4.9 4.9 4.9 4.9 4.9 49.0
TO 6.2 5.6 5.0 4.8 4.7 4.7 4.7 4.9 4.9 4.9 4.9 49.1

(370) Commerce and BA -1.8 -4.2 -4.2 -4.2 -4.2 -4.2 -4.3 -4.4 -4.5 -4.6 -4.7 -43.6
Housing Credit TO 2.5 -0.1 -2.6 -2.8 -3.0 -3.7 -3.9 -4.0 -4.1 -4.1 -4.2 -32.5

(370) On-budget BA -2.1 -4.4 -4.4 -4.4 -4.5 -4.5 -4.6 -4.7 -4.8 -4.9 -5.0 -46.3
TO 2.2 -0.4 -2.8 -3.1 -3.2 -4.0 -4.2 -4.3 -4.3 -4.4 -4.4 -35.2

(370) Off-budget BA 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7
TO 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7

(400) Transportation BA 31.0 23.8 23.7 24.8 24.7 27.7 33.5 35.0 35.5 38.1 41.4 308.2
TO 92.3 80.2 70.9 67.5 65.7 65.6 66.7 67.1 67.5 69.0 80.0 700.3

(450) Community and BA 14.7 11.4 11.4 11.3 11.3 11.1 11.1 10.8 10.8 10.8 10.8 111.0
Regional Development TO 23.8 21.3 18.7 14.9 13.8 12.1 11.1 10.9 10.8 10.8 10.8 135.2
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DISCRETIONARY FUNCTIONS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 yr. Total
(500) Education, Training, BA 92.4 77.0 76.6 76.7 76.2 75.2 72.8 71.4 71.1 71.1 71.0 739.0
Employment, Services TO 115.7 99.8 81.7 77.6 76.6 75.4 72.9 71.5 71.2 71.2 71.0 768.8

(550) Health BA 54.8 50.1 50.0 50.1 50.1 50.1 50.1 50.1 50.1 50.1 50.1 501.1
TO 63.3 60.2 53.2 50.8 50.1 49.4 49.3 50.2 50.2 50.2 50.1 513.5

(570) Medicare BA 5.9 4.9 4.9 4.8 4.8 4.7 4.8 4.9 5.0 5.0 5.2 49.0
TO 5.8 5.3 5.2 5.0 5.0 4.9 5.0 5.1 5.2 5.2 5.4 51.3
(600) Income Security BA 63.4 55.0 56.3 56.7 56.4 55.1 51.2 50.4 50.4 50.3 50.3 532.0
TO 72.1 60.4 58.3 57.3 56.8 55.6 52.3 50.7 50.4 50.3 50.3 542.2

(650) Social Security BA 5.5 5.5 5.5 5.5 5.5 5.5 5.6 5.7 5.9 6.0 6.1 56.8
TO 5.8 5.9 5.8 5.7 5.7 5.6 5.7 5.8 5.9 6.0 6.2 58.1

(650) On-budget BA -0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
TO 0.0 0.2 0.2 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.5

(650) Off-budget BA 5.8 5.5 5.5 5.5 5.5 5.5 5.6 5.7 5.9 6.0 6.1 56.8
TO 5.8 5.7 5.6 5.6 5.6 5.6 5.7 5.8 5.9 6.0 6.2 57.6

(700) Veterans Benefits and BA 56.7 59.0 60.9 62.8 64.8 66.9 69.0 71.2 73.5 75.8 78.3 682.3
Services TO 55.6 57.9 61.0 62.8 64.6 66.4 68.4 70.5 72.8 75.2 77.6 677.1

(750) Administration of BA 50.4 47.0 43.0 43.0 43.0 43.0 43.5 44.5 45.7 46.8 48.0 447.5
Justice TO 52.8 49.8 46.8 45.0 44.2 43.4 43.7 44.2 45.5 46.5 47.6 456.7

(800) General Government BA 17.3 16.0 16.0 16.0 16.0 16.0 16.2 16.6 17.0 17.4 17.8 165.2
TO 20.2 18.9 17.3 16.4 15.8 15.4 15.5 15.7 15.8 16.1 16.5 163.3

(920) Allowances BA -1.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
TO -0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

(970) Global War on BA 156.4 126.5 50.0 50.0 50.0 30.8 8.5 0.0 0.0 0.0 0.0 315.8
Terrorism TO 76.1 117.8 92.7 64.9 54.4 30.8 8.5 0.0 0.0 0.0 0.0 369.0

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