{ "id": "RL34424", "type": "CRS Report", "typeId": "REPORTS", "number": "RL34424", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 435960, "date": "2014-11-26", "retrieved": "2016-04-06T19:53:55.227279", "title": "The Budget Control Act and Trends in Discretionary Spending", "summary": "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays.\nFederal spending in fiscal year (FY) 2014 was just over a fifth (20.3%) of the U.S. economy, as measured as a share of gross domestic product (GDP), which is close to its average share since FY1962. Discretionary spending accounted for 33% of total outlays in FY2014 ($3,504 billion), well below mandatory spending\u2019s share (60% of outlays in FY2014). Weak economic conditions in recent years as well as demographic trends have increased spending on mandatory income support and retirement programs, while policy makers have acted to constrain the growth of discretionary spending. As interest rates return to more normal levels as the recovery proceeds, net interest costs\u20146.6% of federal outlays in FY2014\u2014are projected to rise.\nDiscretionary spending\u2019s share of total federal spending has fallen over time largely due to rapid growth of mandatory outlays. In FY1962, discretionary spending accounted for 67% of total outlays and was the largest component of federal spending until the mid-1970s. Since then, discretionary spending as a share of federal outlays and as a share of GDP has fallen. Under current law projections, discretionary spending\u2019s share of GDP will fall to 5.2% in FY2024. Discretionary spending can be split into various categories to reflect broad national priorities or how federal spending decisions are made. In FY1962, discretionary spending was 12.7% of GDP, with defense spending making up 9.3% of GDP. In FY2014, discretionary spending was 6.8% of GDP, with defense spending (including war) totaling 3.5% of GDP. Defense spending can be divided between base budget and war expenditures, both of which grew sharply from FY2002 through FY2011. On average, defense outlays grew 6.8% per year in real terms from 2000 to 2010, while real non-defense discretionary outlays grew 5.6% per year. Discretionary spending has also been divided into security and non-security categories. Non-defense security spending rose sharply after 2001 and was 1.0% of GDP in FY2013, nearly twice its level before 2001.\nThe Budget Control Act of 2011 (BCA; P.L. 112-25) reintroduced statutory limits on spending by imposing a series of caps on discretionary BA from FY2012 through FY2021. The American Taxpayer Relief Act of 2012 (ATRA; P.L. 112-240) modified limits for FY2013 and FY2014. The FY2013 full-year funding bill (H.R. 933; P.L. 113-6) enacted March 26, 2013, conformed to those limits. The Bipartisan Budget Act (H.J.Res. 59; P.L. 113-67) also modified BCA limits for FY2014 and FY2015. On January 17, 2014, the Consolidated Appropriations Act, 2014 (H.R. 3547; P.L. 113-76) was enacted to provide funding within those limits for the rest of FY2014. On September 19, 2014, a continuing resolution (H.J.Res. 124; P.L. 113-164) was enacted to provide funding for the government until December 11, 2014.\nThe direction of fiscal policy has been the focus of contention among macroeconomists. Some contend that more spending would help reduce high unemployment levels, while others call for imposing greater budgetary stringency. Growth in entitlement program outlays, in the absence of new revenue measures, may put severe pressure on discretionary spending in the future unless policy changes are enacted. This report will be updated as events warrant.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL34424", "sha1": "54c03a5cfc9aa88052017f5ed1ddd417c3489891", "filename": "files/20141126_RL34424_54c03a5cfc9aa88052017f5ed1ddd417c3489891.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL34424", "sha1": "b7ec2f19666414940f80cd437a92cd82a31c3361", "filename": "files/20141126_RL34424_b7ec2f19666414940f80cd437a92cd82a31c3361.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4514, "name": "Fiscal Policy Considerations" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc491616/", "id": "RL34424_2014Apr02", "date": "2014-04-02", "retrieved": "2015-01-27T19:40:46", "title": "The Budget Control Act and Trends in Discretionary Spending", "summary": "This report mostly discusses trends in outlays (disbursements from the U.S. Treasury).", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140402_RL34424_eb7bcc62e831d2310a2d476704e0ed4c7dd606d4.pdf" }, { "format": "HTML", "filename": "files/20140402_RL34424_eb7bcc62e831d2310a2d476704e0ed4c7dd606d4.html" } ], "topics": [ { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Appropriations", "name": "Appropriations" }, { "source": "LIV", "id": "Budgets", "name": "Budgets" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc276895/", "id": "RL34424_2014Jan24", "date": "2014-01-24", "retrieved": "2014-03-05T18:18:19", "title": "Trends in Discretionary Spending", "summary": "This report provides a graphical overview of historical trends in discretionary budget authority (BA) from FY1976 through FY2011, enacted levels for FY2012 spending, and the levels consistent with President Obama's proposals for FY2013 through FY2017. It also includes a background on functional categories and a section discussing historical spending trends.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140124_RL34424_81fbc32b3f85d9cba13a4a8019a29b2902c52a67.pdf" }, { "format": "HTML", "filename": "files/20140124_RL34424_81fbc32b3f85d9cba13a4a8019a29b2902c52a67.html" } ], "topics": [ { "source": "LIV", "id": "Budgets", "name": "Budgets" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Budget deficits", "name": "Budget deficits" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc462849/", "id": "RL34424_2013Apr29", "date": "2013-04-29", "retrieved": "2014-12-05T09:57:41", "title": "Trends in Discretionary Spending", "summary": "This report discusses recent trends in discretionary spending. Topics examined include fiscal policy in the wake of the recession, discretionary spending limits reimposed in 2011, the FY2013 sequestration, long term trends, and security spending.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130429_RL34424_caebcda8a87eba573e24be6234f3705653ce4b92.pdf" }, { "format": "HTML", "filename": "files/20130429_RL34424_caebcda8a87eba573e24be6234f3705653ce4b92.html" } ], "topics": [ { "source": "LIV", "id": "Budgets", "name": "Budgets" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Budget deficits", "name": "Budget deficits" }, { "source": "LIV", "id": "Fiscal policy", "name": "Fiscal policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc463072/", "id": "RL34424_2013Apr15", "date": "2013-04-15", "retrieved": "2014-12-05T09:57:41", "title": "Trends in Discretionary Spending", "summary": "This report discusses recent trends in discretionary spending. Topics examined include fiscal policy in the wake of the recession, discretionary spending limits reimposed in 2011, the FY2013 sequestration, long term trends, and security spending.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130415_RL34424_da505460ec684e494b73423f9dee7a1fe8bb4995.pdf" }, { "format": "HTML", "filename": "files/20130415_RL34424_da505460ec684e494b73423f9dee7a1fe8bb4995.html" } ], "topics": [ { "source": "LIV", "id": "Budgets", "name": "Budgets" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Budget deficits", "name": "Budget deficits" }, { "source": "LIV", "id": "Fiscal policy", "name": "Fiscal policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc31428/", "id": "RL34424_2010Sep10", "date": "2010-09-10", "retrieved": "2011-03-09T09:26:47", "title": "Trends in Discretionary Spending", "summary": "Discretionary spending is provided in, and controlled by, annual appropriations acts, which fund many of the routine activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. This report discusses historical, current, and projected discretionary spending trends. It also describes how current discretionary spending trends reflect national priorities.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100910_RL34424_ef58afc6ab6771f7c9caa05f093ff7601914a8fa.pdf" }, { "format": "HTML", "filename": "files/20100910_RL34424_ef58afc6ab6771f7c9caa05f093ff7601914a8fa.html" } ], "topics": [ { "source": "LIV", "id": "Budgets", "name": "Budgets" }, { "source": "LIV", "id": "Federal budgets", "name": "Federal budgets" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc503684/", "id": "RL34424_2010Apr12", "date": "2010-04-12", "retrieved": "2015-04-30T17:37:21", "title": "Trends in Discretionary Spending", "summary": "This report discusses historical, current, and projected discretionary spending trends. It also describes how current discretionary spending trends reflect national priorities. Discretionary spending is provided in, and controlled by, annual appropriations acts, which fund many of the routine activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100412_RL34424_9b4ee19350ef8a7811c6cc40d65b892c89db6511.pdf" }, { "format": "HTML", "filename": "files/20100412_RL34424_9b4ee19350ef8a7811c6cc40d65b892c89db6511.html" } ], "topics": [ { "source": "LIV", "id": "Budgets", "name": "Budgets" }, { "source": "LIV", "id": "Federal budgets", "name": "Federal budgets" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc503575/", "id": "RL34424_2010Feb22", "date": "2010-02-22", "retrieved": "2015-04-30T17:37:21", "title": "Trends in Discretionary Spending", "summary": "This report discusses historical, current, and projected discretionary spending trends. It also describes how current discretionary spending trends reflect national priorities. Discretionary spending is provided in, and controlled by, annual appropriations acts, which fund many of the routine activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100222_RL34424_9da7e47c028124aabcaea01f053f9af89323a991.pdf" }, { "format": "HTML", "filename": "files/20100222_RL34424_9da7e47c028124aabcaea01f053f9af89323a991.html" } ], "topics": [ { "source": "LIV", "id": "Budgets", "name": "Budgets" }, { "source": "LIV", "id": "Federal budgets", "name": "Federal budgets" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc26272/", "id": "RL34424_2009Jun10", "date": "2009-06-10", "retrieved": "2010-07-07T17:39:19", "title": "Trends in Discretionary Funding", "summary": "Discretionary spending is essentially all spending on federal wages and salaries. Discretionary spending is often divided into defense, domestic discretionary, and international outlays. Defense and domestic discretionary spending compose nearly all of discretionary spending. The Obama Administration contends that many domestic priorities have been underfunded and has proposed some cuts in defense spending. The current economic and financial turmoil, which has led to several major federal interventions, is projected to increase non-defense spending over the next several fiscal years.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090610_RL34424_36006836ba696ac967dd8b9c4b15a67c4cd73999.pdf" }, { "format": "HTML", "filename": "files/20090610_RL34424_36006836ba696ac967dd8b9c4b15a67c4cd73999.html" } ], "topics": [ { "source": "LIV", "id": "Defense economics", "name": "Defense economics" }, { "source": "LIV", "id": "Defense budgets", "name": "Defense budgets" }, { "source": "LIV", "id": "Finance", "name": "Finance" }, { "source": "LIV", "id": "Financial crises", "name": "Financial crises" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809414/", "id": "RL34424_2008Dec23", "date": "2008-12-23", "retrieved": "2016-03-19T13:57:26", "title": "Trends in Discretionary Spending", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20081223_RL34424_90f35d61aa0ea965aa245c260bcfac50150f022a.pdf" }, { "format": "HTML", "filename": "files/20081223_RL34424_90f35d61aa0ea965aa245c260bcfac50150f022a.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc816959/", "id": "RL34424_2008Mar26", "date": "2008-03-26", "retrieved": "2016-03-19T13:57:26", "title": "Trends in Discretionary Spending", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20080326_RL34424_e68c2c0bac4f4c76f943ab50ff9da3a256a88374.pdf" }, { "format": "HTML", "filename": "files/20080326_RL34424_e68c2c0bac4f4c76f943ab50ff9da3a256a88374.html" } ], "topics": [] } ], "topics": [ "Appropriations", "Economic Policy", "Foreign Affairs", "National Defense" ] }