Federal Budget Totals Are Understated Because of Current Budget Practices

Gao ID: PAD-81-22 December 31, 1980

The government's practice is to offset certain types of revenues when computing and reporting budget outlays and revenue totals. In addition, budget totals are further underreported because of the off-budget status of certain federal activities.

GAO believes that the government's practice of offsetting federal business-like revenue totals from budget totals significantly understates outlay and revenue totals, and that off-budget activities should be returned to on-budget status. If these changes were made: (1) total outlays would be about $120 billion higher; (2) total revenues would be about $102 billion higher; and (3) the deficit would be about $18 billion higher. Fully disclosing total levels of federal activities would allow Congress to more effectively exercise control over the federal budget.



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