The President’s Budget and the Long-Term Fiscal Outlook

Over the course of the past five years, federal spending has risen faster than at any time in four decades. In addition, the nation faces the largest tax cuts in U.S. history, a costly war in Iraq, Hurricane Katrina clean-up costs, and rising entitlement spending. As a result, budget deficits remain high and are expected to soar when the baby boom begins retiring in the next few years.

On Feb. 10, the Friday after President Bush released his fiscal 2007 budget, Brookings hosted two panels of experts and policymakers who addressed key policy issues: Is this budget fiscally responsible? How can we assess the President’s priorities? What are the budget’s chances for passage, and what is likely to be modified by Congress?