THE PRESIDENT'S ECONOMIC PLAN:
REACHING BALANCE IN 2005
- In 1993, the President faced a deficit that was rising out of
control -- from $290 billion in 1992 to more than $600 billion early
in the next century.
- The President's 1993 economic plan has cut the deficit
dramatically -- from $290 billion to a projected $190 billion this
- More importantly, it cut the deficit as a percentage of the
economy (GDP) -- from 4.9 percent to 1992 to an estimated 2.7 percent
this year and 2.1 percent by the end of the decade.
- If not for interest on the debt accumulated between 1981 and 1993,
the budget would be in balance today.
- But, largely due to health care costs, the deficit will begin to
rise again -- gradually reaching $266 billion in 2005.
- Now, the President proposes to finish the job -- to balance the
budget by 2005.
- In 2005, the President proposes to save:
- $96 billion in entitlements:
- Medicare, $67 billion
- Medicaid, $19 billion
- Poverty programs, $9 billion
- Other entitlements, $1 billion
- $92 billion in discretionary spending:
- Defense, $27 billion
- Non-defense, $65 billion
- $6 billion in corporate subsidies.
- $117 billion in interest savings.
- The President would target tax relief to average Americans,
costing $26 billion in 2005.
- All told, the President's plan would bring the budget at least to
balance by 2005.
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