Billion Dollar Chump Change

GAO Update on Long-Term Fiscal Outlook

The Budget Control Act limits spending for FY 2012-21 and created the Joint Select Committee on Deficit Reduction. The Act provides for $1.2 trillion in deficit reduction over the period--either through enactment of recommendations by the Joint Committee or through automatic procedures that would reduce spending. However, based on our simulations even this level of deficit reduction is not sufficient to ensure sustainability.