What happened to the budget process?
All of the budget rules in effect in the 1990s, including the pay-as-you go rule (PAYGO) and discretionary spending caps, have expired. The PAYGO rule required tax cuts and spending increases to be offset with other revenue increases or spending reductions, so that new policies would have no net effect on the deficit. Statutory caps on appropriations placed a strong limit on the funding amount Congress could provide in a given year. These budget rules were instrumental in providing the discipline that helped turn large structural deficits into surpluses. House Republicans brought several ill-conceived budget process reform measures to the floor for consideration in June. The Republican proposal to require that new spending be offset, but not new tax cuts, was an ineffective idea, and the draconian entitlement cap procedure included in some Republican amendments was also misguided. Because Republicans were unwilling to compromise, the opportunity to enact meaningful, bipartisan budget p
Related Questions
- I would like to hear about the process for adjustments to baseline budget. What are the potential "adjustments" (and how are they invoked) for expenditure authorization?
- What happened to suggestions made during the FY 2010 budget process?
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