Changing Federal Budget Forecasting Rules: No Inflation Adjustment in Baseline.
This law changes how the U.S. government calculates its long-term financial forecasts, known as the budget baseline. It mandates that these projections must strictly adhere to current laws and current spending levels, explicitly prohibiting adjustments for future inflation. This change ensures that future budget debates rely on more conservative estimates of available funds, potentially influencing decisions on new spending or tax cuts.
Key points
Budget forecasts (the baseline) must now be based strictly on current laws and current funding levels, without anticipating future changes.
The calculation explicitly forbids adjusting future program costs for inflation or any other factor.
Emergency funding and supplemental appropriations are excluded from the standard baseline calculation.
Expired
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