Budget Issues: Comparison of Discretionary Outlays Under Alternative Spending Paths

Pursuant to a congressional request, GAO compared defense, nondefense, and total discretionary spending under five discretionary spending paths, focusing on: (1) the Congressional Budget Office (CBO) estimates for the congressional budget resolution for fiscal year 2000; (2) the CBO baseline assuming that discretionary spending complies with the statutory caps through 2002 and grows with inflation thereafter (CBO capped baseline); (3) an alternative CBO baseline assuming that discretionary spending grows with inflation after 1999 and with no projection for emergencies; (4) the Office of Management and Budget (OMB) Mid-Session Review estimate of discretionary spending under the President's budget without the Social Security and Medicare reforms proposed; and (5) the OMB baseline assuming that discretionary spending complies with the statutory caps through 2002 and grows with inflation thereafter (OMB capped baseline).