How accurate are long-run budget projections? Q.How accurate are long-run budget projections? A.Budget projections are inevitably uncertain. COVID-19 has pushed deficits far above expectations, for example. On the other hand, interest rates have fallen substantially in recent decades, limiting the debt service costs of rising debt. Despite these and other changes, long-run budget projections consistently show that, under existing policies, the public debt will likely continue to grow faster than the economy. Read more about How accurate are long-run budget projections?
How does the federal budget process work? Q.How does the budget process work? A.Ideally, following submission of the president’s budget proposal, Congress passes a concurrent budget resolution setting total spending, revenue, and deficit targets for at least the next five years, and then passes annual appropriation bills to fund discretionary programs and legislation to enact any changes to mandatory programs and taxes. The process has typically broken down at various points in recent years, however, with Congress failing to pass a concurrent resolution or not completing timely action on appropriations. Read more about How does the federal budget process work?
How is a budget resolution enforced? Q.How is a budget resolution enforced? A.Spending and revenue targets set in the annual budget resolution are enforced by points of order, which any member of Congress may raise against legislation inconsistent with those targets. Read more about How is a budget resolution enforced?
