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Economic News, Data and Analysis

2005 Federal Budget Continues Fiscal Decline

OMB Watch has released a new report entitled “2005 Federal Budget Continues Fiscal Decline.”
The report finds that even if we take the numbers in the budget at face value, there is considerable fiscal decline in the federal budget, including:
* A deficit of $521 billion for 2004;
* Revenue at 15.7% of GDP – the lowest in over 50 years;
* Massive structural deficits totaling $1.3 trillion over the years 2005-2009;
* Long-term deficits over the next 50 years, tripling current deficits as a percentage of GDP; and
* Over the next 10 years, the president is proposing a net $1.1 trillion in revenue reductions – most of which (87%) will occur after the 2005-2009 window included in the budget.
The final section offers some of the implications of this recent fiscal decline.
See OMB Watch – 2005 Federal Budget Continues Fiscal Decline for full details.

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