Major Issues Facing the Congress
T-AFMD-92-4: Published: Feb 6, 1992. Publicly Released: Feb 6, 1992.
- Full Report:
GAO discussed the current state of government management and its impact on federal services. GAO noted that: (1) the President and Congress have made a serious attempt to bring the deficit under control, but the government will not achieve its latest balanced budget goal; (2) according to the Congressional Budget Office, most of the deficit change has resulted from decreased revenues and corrections in medical estimates and net interest payments; (3) defense, health, deposit insurance, and interest outlays account for about 70 percent of all general fund fiscal year (FY) 1993 outlays and could greatly help reduce the overall deficit; (4) health care costs grew by almost 70 percent, from 7.3 percent of the gross national product in FY 1970 to 12.3 percent in FY 1990; (5) the Federal Deposit Insurance Corporation estimates that 375 institutions are failing or will require assistance over the next 2 years, with losses to the Bank Insurance Fund totalling as much as $43 billion and working capital needs totalling $59 billion; (6) interest on public debt was one of the most rapidly growing components of government spending; (7) the President plans to reduce forces and cut nuclear weapons to reduce defense spending; (8) it has undertaken a special audit program to detect mismanagement, fraud, and abuse and has identified 16 target areas as being at high risk for fraud, waste, and abuse; and (9) the Office of Management and Budget's (OMB) guidance covering the Chief Financial Officers Act authorities, qualifications, financial statements, and auditing has been adequate, but OMB may not have sufficient resources for this function.