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Published: 2003

Total Pages: 38

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At the request of the Senate Committee on Appropriations, the Congressional Budget Office (CBO), with contributions from the Joint Committee on Taxation (JCT), has prepared this analysis of the President's budgetary proposals for fiscal year 2004. CBO estimates that under the President s proposals, the deficit in 2003 and 2004 would rise to $287 billion and $338 billion, respectively (see Tables 1 and 2 on pages 17 and 18). For 2003, revenues would remain nearly unchanged from 2002, while outlays would increase by 6.6 percent under the President's plan. The following year, revenues would grow by 2.7 percent, while outlays would climb by 4.8 percent. As a share of the economy, revenues would dip below 17 percent in 2004 and outlays would reach nearly 20 percent, thereby producing a total budget deficit equal to 3 percent of gross domestic product (GDP). Under the President s plan, over the 2004 2013 period, percent, while the growth in outlays would slow to an average annual rate of 4.9 percent. Over those 10 years, under the President s policies deficits would persist but slowly decline, totaling roughly $1.8 trillion. However, annual deficits would be small as a percentage of the economy less than 2 percent in most years. revenues would grow at an average annual rate of 6.1 percent, while the growth in outlays would slow to an average annual rate of 4.9 percent. Over those 10 years, under the President s policies deficits would persist but slowly decline, totaling roughly $1.8 trillion. However, annual deficits would be small as a percentage of the economy less than 2 percent in most years.