Number: RS21756
Title: The Option of Freezing Non-defense Discretionary Spending to Reduce the Budget Deficit
Authors: Gregg Esenwein and Philip D. Winters, Government and Finance Division 
Abstract: Congressional concern over the size of the federal budget deficit has prompted calls for a reduction in federal expenditures. One proposal would freeze non-defense discretionary funding at its FY2005 level. Since non-defense discretionary outlays constitute slightly under 20% of overall federal outlays, limiting their growth would produce a modest reduction in the federal budget deficit. Congressional Budget Office (CBO) estimates indicate that freezing non-defense discretionary funding at its FY2005 level would produce a cumulative savings of approximately $147 billion including reduced interest payments over the FY2006 to FY2010 time period. These savings would reduce the cumulative baseline budget deficit by approximately 12% over the period.
Pages: 4
Date: March 23, 2005