How accurate are long-run budget projections? Q.How accurate are long-run budget projections? A.Long-run budget projections depend on assumptions about future economic, legislative, and demographic conditions. As a result, those projections are highly uncertain. Nonetheless, they provide useful information. Under a wide range of assumptions, those projections indicate the public debt will increase faster than economic growth in coming decades. Read more about How accurate are long-run budget projections?
What does it mean for a government program to be off-budget? Q.What does it mean for a government program to be off-budget? A.The two Social Security trust funds and the postal service are “off-budget”—their spending and receipts are walled off from the rest of the budget. Putting Social Security and the post office off-budget shields them from some pressures, but policymakers often focus on the unified budget that includes them. A few other agencies are excluded because of their independence (e.g., the Federal Reserve) or private character (e.g., government-sponsored, privately owned entities and funds managed for private citizens). Read more about What does it mean for a government program to be off-budget?
What is the history of the federal budget process? Q.What is the history of the budget process? A.In 1972, President Richard Nixon impounded funds for various social programs. Nixon argued that because Congress lacked a process for controlling the federal budget, budget deficits might expand irresponsibly if the president lacked the power to block funding. Congress responded by establishing a formal budget process through the Congressional Budget and Impoundment Control Act of 1974. Read more about What is the history of the federal budget process?