National fiscal policy is “unsustainable,” according to a
new report from the Government Accountability Office,
and continuing with it “will gradually erode, if not
suddenly damage, the nation’s economy, its standard of
living, and ultimately its national security.”
It said the long-term fiscal outlook necessitates a more
transparent budget process so elected representatives
get “more explicit information on the present value
dollar costs of major spending and tax bills,” before
voting on them.
The long-term fiscal gap grew significantly larger in
2004 and budget simulations — GAO’s and those of the
Congressional Budget Office and others – “show that, over
the long term the nation faces a large and growing
structural deficit due primarily to known demographic
trends and rising health care costs,” according to
GAO-05-317T.
It said economic growth and modest changes to existing
spending and tax policy would not be enough to fix the
problem, and called for a “fundamental reexamination of
major spending and tax policies and priorities.”
