Expectations Vs Reality For the FY 2016 Budget
With the first session of the the 114th Congress rapidly drawing to a close and the big budget issues being settled, we will take a look at how the actual legislation enacted compared to the Fiscal Year (FY) 2016 Congressional budget resolution.
With a tax extenders deal that costs $680 billion (and over $2 trillion over 20 years), an unpaid-for doc fix, and gimmicks left and right, things did not turnout the way Congress had planned in their budget, which was supposed to save over $5 trillion over ten years and balance by 2024. Below we break out how badly Congress missed its targets.
|The FY 2016 Budget Resolution||The 114th Congress 1st Session|
|Revenue||Kept at baseline||$680 billion less from tax extenders ($650 billion net with BBA 2015 revenue)|
|FY 2016 Discretionary Spending||Kept at the sequester-level spending caps||Raised 2016 discretionary budget authority by $50 billion|
|Medicare||$431 billion in net savings||$95 billion more net spending|
|The Affordable Care Act||Repealed||Delayed revenue raising measures|
|War Spending||$38 billion of defense slush fund||Included slush fund for defense and non-defense|
|Other Mandatory||$1.4 trillion in savings||$33 billion in savings*|
|Highway Trust Fund||Make solvent||Financed $70 billion transfer with $53 billion in gimmicks|
|2025 Deficit||$24 billion surplus||On track for $1.1 trillion deficit|
|2025 Debt||56% of GDP||On track for 80% of GDP|
*$13 billion from the highway bill and $20 billion from the BBA 2015
For more of our coverage of the year-end tax extenders deal see our blog.