Assessment of the Administration's Actions and Proposals for Budgetary Savings in FY's 1982-83

PAD-82-34: Published: Apr 20, 1982. Publicly Released: Apr 20, 1982.

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GAO was asked to provide information on the status of the Administration's efforts to achieve savings in fiscal year (FY) 1982. In addition, GAO assessed the estimates for savings to be achieved by management initiatives proposed in the FY 1983 budget.

GAO found that the Administration has revised its estimates of potential savings and collections that can be achieved in FY 1982. The savings estimates for FY 1982 have increased from $2 billion to about $3 billion. Increases in the estimates for debt collection, unresolved audit findings, and foreign military sales account for the major portion of this increase. The estimate for collection of unpaid taxes has increased slightly while the quantifiable estimates for paperwork reduction and defense logistical economies have decreased. The Administration has continued to give high priority to collection efforts on debts and unpaid taxes owed the Government. Savings to be achieved as a result of resolution of previously unresolved audit findings and of paperwork reduction are difficult to estimate because of the lack of available data or systems to monitor and progress and accurately measure the savings. GAO believes that considerable savings could be realized from improvements in Defense logistics, multiyear contracting, and foreign military sales. GAO will continue to monitor the Administration's progress in these areas. Quarterly reports to the Treasury Department are required under the debt collection program, and a system is in place. The Administration has proposed savings of $20.3 billion in FY 1983, including $14.8 billion in outlay reduction and $5.5 billion in increased tax receipts. Of the $20.3 billion in estimated savings, $3.9 billion, or about 19 percent, will require changes in legislation.

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