Budget Process_Books

Expectations Vs Reality For the FY 2016 Budget

Dec 18, 2015 | Budgets & Projections| Taxes

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The Affordable Care Act Repealed Delayed revenue raising measures 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.