Accession Number : ADA530575
Title : The FY2011 Federal Budget
Descriptive Note : Congressional rept.
Corporate Author : LIBRARY OF CONGRESS WASHINGTON DC CONGRESSIONAL RESEARCH SERVICE
Personal Author(s) : Levit, Minday R
Report Date : 04 Aug 2010
Pagination or Media Count : 25
Abstract : While considering the FY2011 budget, Congress faces very large budget deficits, rising costs of entitlement programs, and significant spending on overseas military operations. In FY2008 and FY2009, the enactment of financial intervention and fiscal stimulus legislation helped to bolster the economy, though it increased the deficit. While GDP growth has returned in recent quarters, unemployment remains elevated and government spending on automatic stabilizer programs, such as unemployment insurance and income support, remains higher than historical averages. Between FY2000 and FY2009, federal spending accounted for approximately 20% of the economy (GDP) and federal revenues averaged 18% of GDP. In FY2009, the U.S. government spent almost $3.5 trillion (25% of GDP) and collected $2.1 trillion in revenue (15% of GDP). Between FY2008 and FY2009, outlays increased by $535 billion, while revenues fell by $419 billion. The deficit in FY2009 was $1,413 billion, or 9.9% of GDP, sharply higher than deficits in recent years. The current economic climate poses a challenge to policymakers shaping the federal budget. Numerous actions taken by the federal government in FY2008 and FY2009 have had major effects on the budget, including two major economic stimulus measures and a variety of programs within the Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC). The impact of this legislation, along with any additional legislation enacted, will influence deficit levels in FY2010 and beyond. The final costs of federal responses to this turmoil will depend on the pace of economic recovery, how well firms with federal credit guarantees weather future financial shocks, and government losses or gains on its asset purchases.
Descriptors : *FEDERAL BUDGETS , UNITED STATES GOVERNMENT , FINANCIAL MANAGEMENT , ECONOMICS , UNEMPLOYMENT , LEGISLATION , FINANCE , INCOME , RECOVERY , DEFICIENCIES
Subject Categories : Administration and Management
Distribution Statement : APPROVED FOR PUBLIC RELEASE