Bush's Government

The Budget and Economic Outlook: Fiscal Years 2006 to 2015 January 2005

no funding has yet been provided this year for
activities in Iraq and Afghanistan. Such funding—when
provided—is likely to add about $30 billion to outlays
this year, raising growth in total outlays in 2005 to 7.1
percent, higher than the 6.1 percent growth experienced
from 2003 to 2004.

Total spending as a percentage of gross domestic product
dropped slightly between 2003 and 2004, from 19.9 percent
to 19.8 percent. Under baseline projections, CBO
estimates that outlays will remain at that level of GDP in
2005; once additional funding is provided for operations
in Iraq and Afghanistan, that figure is likely to rise to at
least 20.1 percent

In the absence of further
appropriations, outlays for discretionary defense activities
are projected to climb by $10 billion, or 2.2 percent, in
2005. Once operations in Iraq and Afghanistan are fully
funded, that rate of increase will most likely grow to
about 8.9 percent.
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What is the horror in these Comments? It resides in the fact Federal Spending is increasing at 7.1% per year(higher if you accept the expected $80b Iraq-Afghan appropriation, rather than the CBO projection of $30b). This becomes especially disturbing when Federal outlays are expected to equal One-Fifth of GDP with the Iraq/Afghan appropriation. It does not make one smile to realize GDP growth did not exceed 4% for 2004. A greater disturbing element comes from the expectation that Y2006 spending will increase greatly through implementation of the Proscription Drug benefit, while the Economy is expected to slow to a growth rate of 3.5% of GDP this year.

Where is the Enemy of Big Government on the 2000 Campaign trail? It would not be so horrible, except We need more Troops--not fancier Weapons systems; We need fewer foreign commitments--not more, check the Bush desire to move against Iran militarily; and We need more Tax revenues--not more Tax credits for Everyone. lgl