Establishing a sustainable fiscal policy is central to the nation’s long-term economic
prospects, but requires a clear understanding of how past and current policies affect future
resources. The federal budget should, but does not, provide this information, both because the
task is difficult and current accounting practices are deficient. This paper shows that adjusting
the official budget for many accounting and economic issues implies a bleak fiscal outlook that
presents policymakers with difficult choices. We also explore options to restore fiscal
sustainability directly and to improve the budget process that governs fiscal decisions.