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What Budget Cuts
CBO: Recent spending bill falls short on cuts
Ooops!
Remember the big budget deal that narrowly averted a government shutdown in April? The one that was going to save $39 billion from this year's budget? Well, it turns out those numbers were a farce.
The Congressional Budget Office reported yesterday that the budget deal will save $122 billion in outlays - over ten years, which is much less than the over $300 billion that Republicans had been touting.
Even worse, the CBO says that spending in the current fiscal year will actually increase - yes, you read that right - by $3.2 billion.
"Total discretionary outlays in 2011 will be $3.2 billion higher as a result of the legislation," the CBO said in a report posted online Monday.
CBO: Recent spending bill falls short on cuts
Speaker John Boehner, R-Ohio, had touted the legislation as reducing the deficit by more than $300 billion over a ten-year span. His prediction was based on an analysis by a Senate aide that the $38 billion in cuts this year would translate into $315 billion over a decade.
But the Congressional Budget Office, the closest thing to an official referee, said Monday the cuts add up to much less.
Ooops!