Federal Fiscal year end close complete= New Spending Record

Discussion in 'Economy' started by Trajan, Oct 18, 2011.

  1. Trajan

    Trajan conscientia mille testes Staff Member

    Jun 17, 2010
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    Federal Fiscal year end close complete= New Spending Record

    The books are closed on 2011. Let’s review, shall we?

    - there was no budget created for fiscal 2011.

    - the budget process as stipulated by the Congressional Budget and Impoundment Control Act of 1974, has the president submitting a budget by end of feb. for the next fiscal year, i.e. in 2010 you create the budget for 2011 (with a drop dead date of Oct. 1st).

    -The CBO scores this, then the house and senate budget comm.’s work on their versions. They have a get together and hammer away at each and create a Conference Report they both vote on , or as commonly known- the Budget Resolution. If both sides pass the resolution, it goes to the President for approval, or not.

    -There have been years where in the final budget was not passed on time, this in and of itself is not so huge a deal,( depending on how long of course we live by temporary spending measures, known as ‘Continuing Resolutions’, which the president MUST approve) but here in 2010, they didn’t even approve a Budget Resolution, the first time since the implementation of the 1974 Budget Act.

    - We wasted 2 very valuable months ( they became valuable as the Debt Ceiling crisis ‘crept’ up on us like a broken chainsaw) as the newly minted rep. house tried to get the senate to actually enact some cuts, so as to carte a Budget Res. For the year already taking place, this year. which doesn’t appear to have done much…cowboy poetry and the like, it was apparent then and is very apparent now in the final accounting that there are some who will just not stop spending and we need to remember, we are STILL borrowing roughly 3-4 Billion a day, in any event, we hit a new record anyway, the numbers are added below.

    I don’t quite know how to define it, but there is a huge philosophical ( and perhaps semantical) dishonesty at work when one accuses another of wanting to ‘cut spending ’, when the cuts would amount to the money we are borrowing……:doubt:

    A New Spending Record
    Washington had its best year ever in fiscal 2011.
    OCTOBER 18, 2011


    The Congressional Budget Office recently finished tallying the revenue and spending figures for fiscal 2011, which ended September 30, and no wonder no one in Washington is crowing. The political class might have its political pretense blown. This is said to be a new age of fiscal austerity, yet the government had its best year ever, spending a cool $3.6 trillion. That beat the $3.52 trillion posted in 2009, when the feds famously began their attempt to spend America back to prosperity.

    What happened to all of those horrifying spending cuts? Good question. CBO says that overall outlays rose 4.2% from 2010 (1.8% adjusted for timing shifts), when spending fell slightly from 2009. Defense spending rose only 1.2% on a calendar-adjusted basis, and Medicaid only 0.9%, but Medicare spending rose 3.9% and interest payments by 16.7%.

    The bigger point: Government austerity is a myth.

    In somewhat better news, federal receipts grew by 6.5% in fiscal 2011, including a 21.6% gain in individual income tax revenues. The overall revenue gain would have been even larger without the cost of the temporary payroll tax cut, which contributed to a 5.3% decline in social insurance revenues but didn't reduce the jobless rate.

    The nearby table shows;


    the budget trend over the last five years, and it underscores the dramatic negative turn since the Obama Presidency began. The budget deficit increased slightly in fiscal 2011 from a year earlier, to $1.298 trillion. That was down slightly as a share of GDP to 8.6%, but as CBO deadpans, this was still "greater than in any other year since 1945."

    Mull over that one. The Obama years have racked up the three largest deficits, both in absolute amounts and as a share of GDP, since Hitler still terrorized Europe. Some increase in deficits was inevitable given the recession, but to have deficits of nearly $1.3 trillion two years into a purported economic recovery simply hasn't happened in modern U.S. history. Yet President Obama fiercely resisted even the token spending cuts for fiscal 2011 pressed by House Republicans earlier this year.

    more at-

    Review & Outlook: A New Spending Record - WSJ.com
    Last edited: Oct 18, 2011

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