WASHINGTON (MNI) – The following is an excerpt from the letter sent
by the U.S. Congressional Budget Office to Senate Majority Leader Harry
Reid Wednesday with estimates of his deficit reduction proposal, which
would raise the debt ceiling by $2.7 trillion to $16.994 trillion:
In total, if appropriations in the next 10 years are equal to the
caps on discretionary spending and the maximum amount of funding is
provided for the program integrity initiatives, CBO estimates that the
legislation would reduce budget deficits by about $2.2 trillion between
2012 and 2021 relative to CBO’s March 2011 baseline adjusted for
subsequent appropriation action. Savings in discretionary spending would
amount to nearly $1.8 trillion, mandatory spending would be reduced by
$41 billion, and the savings in interest on the public debt because of
the lower deficits would come to $375 billion. (CBO’s cost estimates for
legislation do not ordinarily include effects on debt service costs, but
CBO provides such estimates, when requested, for broad budget plans.)
** Market News International Washington Bureau: (202) 371-2121 **
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