FISCAL YEAR 2014

MID-SESSION REVIEW
BUDGET OF THE U.S. GOVERNMENT

OFFICE OF MANAGEMENT AND BUDGET

BUDGET.GOV

FISCAL YEAR 2014

MID-SESSION REVIEW
BUDGET OF THE U.S. GOVERNMENT

OFFICE OF MANAGEMENT AND BUDGET
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outlays. budget authority. contains revised estimates of receipts. requests that the President send to the Congress a supplemental update of the Budget that was transmitted to the Congress earlier in the year.C. 20503 THE DIRECTOR July 8. D. and the budget deficit for fiscal years 2013 through 2023. United States Code. Speaker: Section 1106 of Title 31. commonly known as the Mid-Session Review. 2013 The Honorable John A. DC 20510 Dear Mr.EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. �M�!::Director Enclosure Identical Letter Sent to the President of the Senate . Sincerely. Boehner Speaker of the House of Representatives Washington. This enclosed supplemental update of the Budget.

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TABLE OF CONTENTS Page List of Tables��������������������������������������������������������������������������������������������������������������������������������������������� iii Summary�����������������������������������������������������������������������������������������������������������������������������������������������������1 Economic Assumptions�������������������������������������������������������������������������������������������������������������������������������5 Receipts�����������������������������������������������������������������������������������������������������������������������������������������������������11 Expenditures���������������������������������������������������������������������������������������������������������������������������������������������13 Summary Tables���������������������������������������������������������������������������������������������������������������������������������������17 i .

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Bridge From Balanced Budget and Emergency Control Act (BBEDCA) Baseline to Adjusted Baseline ��������������������������������������������������������������������28 Table S–8. Effect of Budget Proposals on Projected Deficits �������������������������������������������������������������19 Table S–3. Funding Levels for Appropriated (“Discretionary”) Programs by Agency ���������������������56 Table S–11. Page Changes in Deficits from the 2014 Budget ������������������������������������������������������������������������4 Table 2. Change in Receipts ������������������������������������������������������������������������������������������������������������12 Table 5. Economic Assumptions �������������������������������������������������������������������������������������������������������6 Table 3.LIST OF TABLES Table 1. Change in Outlays �������������������������������������������������������������������������������������������������������������16 Table S–1. Cumulative Deficit Reduction �������������������������������������������������������������������������������������������21 Table S–4. Mandatory and Receipt Proposals ������������������������������������������������������������������������������������29 Table S–9. Federal Government Financing and Debt ������������������������������������������������������������������������59 iii . Proposed Budget by Category as a Percent of GDP ��������������������������������������������������������26 Table S–7. Proposed Budget by Category �������������������������������������������������������������������������������������������24 Table S–6. Budget Totals ���������������������������������������������������������������������������������������������������������������������18 Table S–2. Adjusted Baseline by Category �����������������������������������������������������������������������������������������22 Table S–5. Comparison of Economic Assumptions ������������������������������������������������������������������������������9 Table 4. Funding Levels for Appropriated (“Discretionary”) Programs by Category ������������������54 Table S–10.

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more than 1. the MSR estimates that the deficit will fall to below 3 percent of GDP by 2017 and to about 2 percent of GDP by 2023. the Budget invests in high-tech manufacturing and innovation. and other changes that have occurred since the release of the President’s 2014 Budget. As a percentage of gross domestic product (GDP). Through the determination and resiliency of the American people and the decisive actions of the President working with Congress to bolster job growth and jumpstart economic activity. receipts. But while the economy is adding jobs.7 percent. while cutting red tape to help businesses grow. and businesses—small and large—were struggling. we successfully broke the back of the recession and pulled the Nation back from the brink. economy has made significant progress in recovering from the worst downturn since the Great Depression. STRENGTHENING THE ECONOMIC RECOVERY The President believes our top priority must be strengthening the true engine of economic growth—a rising and thriving middle class. but too many families with solid credit are still finding it difficult to buy a home or refinance. the U. When the President took office in 2009. the Budget invests in the potential of the middle class and our economy while keeping us on a fiscally disciplined long-term path. We have seen positive economic growth for 15 consecutive quarters. it builds ladders of opportunity to help every American and every community.S.000 jobs a month. And the housing market and the auto industry continue to show signs of recovery. credit markets that provide capital for investment had seized up. Businesses are hiring again. the private sector has added jobs every month for 40 straight months. The MSR also shows that the Budget achieves the core goal of fiscal sustainability by putting Federal debt on a declining path as a share of the economy.SUMMARY This Mid-Session Review (MSR) updates the Administration’s estimates for outlays. speed job creation. Home prices are rising at the fastest pace in seven years and construction is expanding. Through June. The 2014 Budget demonstrates that we do not need to choose between making critical investments necessary to help grow our economy and support middle class families and continuing to cut the deficit in a balanced way. It offers concrete strategies to address three fundamental questions: How do we attract more jobs to our shores? How do we equip our people with the skills needed to do the jobs of the 21st Century? How do we make sure hard work leads to a decent living? To once again make America a magnet for jobs.0 percent projected in the Budget. and the deficit for economic. and sets forth a visionary proposal to ensure every four-year-old has access to high quality pre-school.6 percent as of June. Going forward. The unemployment rate has fallen from a high of 10 percent in 2009 to 7.000 jobs over the past three years. While more work remains to be done. The Budget shows how we can do both. and infrastructure. with a total of 7. too many Americans are still unemployed and have been looking for work for too long. the 2013 deficit is now projected to equal 4. To give workers the skills they need to compete in the global economy. The economy has been recovering ever since. 1 . By identi- fying offsets for each of these initiatives. it invests in education and job training. and expand the middle class. but too many are still struggling to compete and find workers with the right skills to meet their needs.2 million private sector jobs have been added so far.  This year alone. And although corporate profits have climbed to all-time highs. clean energy.2 million jobs added over that period. the private sector was losing over 800. He will continue to pursue policies to accelerate the recovery. down from the 6. legislative. The 2013 deficit is now projected to be $759 billion. wages and incomes for America’s middle class have continued to stagnate. $214 billion lower than the $973 billion deficit projected in the Budget. The housing market was in free fall and our auto industry was near collapse. To ensure hard work is rewarded. Manufacturers have added more than 500.

it invests in American innovation. and revenue from tax reform to achieve nearly $1. deficits fall to about 2 percent of GDP. the current year deficit has fallen by $214 billion compared to the projections in the Budget. drive economic growth. As a Nation we are more than halfway toward the goal of $4 trillion in deficit reduction that bipartisan. The Congressional Budget Office estimated the effect of the Senate immigration bill. we can strengthen the middle class. and found that the bill would reduce Federal deficits by $158 billion over the first decade and by about $700 billion in the second decade. we have experienced the fastest period of deficit reduction since the years immediately following World War II.4 trillion. THE ROLE OF DEFICIT REDUCTION IN PROMOTING SUSTAINED ECONOMIC GROWTH AND JOB CREATION Over the past few years. the bipartisan Senate-passed immigration reform bill would strengthen Social Security over the long-term. focusing on energy production. the Senate passed. entitlement reforms. bringing total deficit reduction to more than $4. it invests in 15 manufacturing innovation institutes across the country.  In addition. transforming regions into global epicenters of advanced manufacturing. The President’s Budget includes a compromise plan to achieve that goal while demonstrating that we do not need to choose between economic growth and fiscal discipline. and debt continues to decline every year after 2015. To ensure America remains competitive in the 21st Century. put our debt on a downward trajectory. That is why the President is committed to continuing to reduce the deficit in a balanced way. and put us on a fiscally sustainable path. But economic growth alone will not solve our Nation’s long-term fiscal challenges. The President and the Congress have achieved over $2.5 trillion in deficit reduction by cutting spending by more than $1. For example. according to the independent Social Security Office of the Chief Actuary. We are already making progress down this path to further deficit reduction.3 trillion. independent experts have identified as necessary to bring deficits below 3 percent of GDP. Over the next 10 years. a bill that would achieve these goals and also make a substantial contribution to reducing the deficit. In June. and the promotion of energy efficiency efforts in . In addition to the policies explicitly reflected in the MSR. streamline the legal immigration system to attract highly-skilled entrepreneurs and engineers to help create jobs. Putting our budget on a sustainable fiscal path is a critical step toward MID-SESSION REVIEW ensuring that we have a solid foundation on which to build a strong economy and a thriving middle class for years to come. and establish a responsible pathway to earned citizenship. the MSR shows that the Federal debt will begin to decline as a share of the economy in 2016. and grow our economy. crack down on employers who exploit American and immigrant workers. Under the revised estimates in the MSR. and reunite Americans with their families. reviving our manufacturing base and keeping our Nation at the forefront of technological advancement. The President’s compromise proposal combines additional spending cuts. it advances the President’s all-of-the-above energy strategy. WHILE INVESTING IN THE MIDDLE CLASS AND AMERICA’S FUTURE The 2014 Budget presents a strategy to grow the economy in both the short and long term. and realizing interest savings. the President has outlined a plan for commonsense immigration reform and called on Congress to enact legislation that would strengthen our borders. using its own economic and technical assumptions.2 By making investments in our people and infrastructure.8 trillion in additional deficit reduction over the next 10 years. make America a magnet for jobs and innovation. REPLACING SEQUESTRATION WITH BALANCED DEFICIT REDUCTION. In addition. with a strongly bipartisan vote. and deficits will continue to fall to below 3 percent of GDP in 2017. ensuring full Social Security solvency until 2035—two years longer than if we fail to act on immigration— and reducing Social Security unfunded liabilities by half a trillion dollars through 2087. achieving more than $600 billion in new revenue from raising tax rates on the wealthiest Americans. the development of clean energy alternatives. To ensure our energy security and combat global climate change.

create jobs. In the Budget Control Act (BCA). However.S. and maintains investments in education. not hold it back. The law included the threat of sequestration as a mechanism to force Congress to act. With the recovery gaining traction.000 jobs in 2013. Although the economy has continued to grow and job creation has held steady. and strengthen the middle class. The Budget demonstrates that we can replace these economically-damaging cuts with smart. including high-speed rail. innovation. the Republican House has proposed to shift funding to defense accounts by imposing even deeper cuts in areas such as education. it invests in repairing our existing infrastructure and building the infrastructure of tomorrow. strengthen entitlements. competitiveness. and it is the approach the President has proposed in his 2014 Budget. we could be experiencing even stronger growth and job creation were it not for sequestration. That is the right path forward. targeted efforts to cut wasteful spending. sequestration itself was never intended to be implemented. includes entitlement reform that takes further steps to address rising health care costs while providing protections for the most vulnerable. Unfortunately. And to ensure hard work leads to a decent living. and infrastructure. To build a foundation for growth and competitiveness and create jobs now. The specter of harmful across-the-board cuts to defense and non-defense programs was intended to drive both sides to compro- 3 mise. we need to focus on ways to protect and accelerate economic growth. The CBO estimated that sequestration will reduce the Nation’s economic growth by more than half a percentage point and cost 750. Sequestration is already having negative impacts on the country and the American people. Moreover.SUMMARY both the public and private sectors. Congress’s failure to act on an alternative deficit reduction plan led the scheduled cuts to begin taking effect in March. Bipartisan and independent groups that have examined the Nation’s fiscal outlook have concluded that the best way forward is a balanced plan that phases in deficit reduction to avoid harming the economic recovery. high-tech schools. Congressional Republicans. If allowed to continue. while at the same time making critical investments to grow the economy. and raising the minimum wage to $9 an hour so a hard day’s work pays more. Importantly. it creates new ladders of opportunity by expanding childhood education. The negative effects of sequestration are already being felt in areas ranging from reduced Army and Air Force training programs to cuts in National Institute of Health research to cuts at Head Start centers. . primarily in the House of Representatives. The BCA also established the Joint Committee to provide Congress with an opportunity to reach bipartisan agreement on achieving an additional $1. supporting communities as they rebuild from the Great Recession. creating pathways to work for the long-term unemployed and youth. Other independent economic forecasters have reached similar conclusions. Instead.2 trillion in balanced deficit reduction over 10 years. sequestration will further harm the economy and undermine the middle class. and eliminate loopholes through tax reform. these impacts will build over time. innovation and infrastructure. have been unwilling to accept any plan to replace sequestration that includes new revenue. the 2014 Budget also supports economic growth by including more than enough deficit reduction to replace sequestration and the deep discretionary funding cuts triggered by the failure of the Joint Select Committee on Deficit Reduction (the “Joint Committee”) to reach an agreement. Congress can and should take action to replace it by passing a comprehensive and balanced deficit reduction package. raises new revenue from tax reform that will also improve U. and power grids that are resilient to future extreme conditions. the Congress agreed on tight caps for discretionary spending that will allow for the critical investments we need to grow the economy while saving more than a trillion dollars over the next 10 years and bringing domestic discretionary spending to its lowest level as a share of the economy since the Eisenhower Administration.

2% 2.4% 2..4% 2.1% 2...4% 3. 2 Includes change in allowance for future disaster costs.. economic and technical reestimates ������������ –43 1 3 6 3 3 2 8 –3 2 ..2% 2.4 MID-SESSION REVIEW Table 1. changes ������������������������������������������������������������������� –214 6 49 50 29 21 47 81 155 532 Mid-Session Review deficit ���������������������������������������������� Percent of GDP ������������������������������������������������������������� 759 750 626 578 516 496 545 584 566 593 549 4..1% Note: positive figures represent higher outlays or lower receipts..3% 2.. 2 * 1 1 –* –* –1 –1 17 17 21 25 4 7 11 15 23 26 33 41 81 65 74 109 54 –54 32 –16 20 12 1 –15 –6 –7 –16 5 1 –13 * 3 17 163 123 –85 65 –43 34 32 31 –19 –15 –14 –11 7 5 –16 93 41 156 540 Total......6% 2..1% 2. enacted legislation ��������������������������������������� 973 744 576 528 487 475 498 503 501 519 439 6.. 1 Includes debt service on all reestimates....4% 2.7% 4..5% 2..4% 2.. outlays 2 ������������������������������������������������� Subtotal.. ..3% 2.6% 2.8% 2..1% 1.. .......5% 3.7% 5 * 5 –8 * –8 * –* * * –* * –* –* –* –* –* –* * –* –* * –* * * –* * * –* * * –* –* –8 –* –8 –7 –1 –8 –65 11 47 46 27 15 30 58 40 42 69 146 384 2 2 1 1 14 21 Economic and technical reestimates: Receipts �������������������������������������������������������������������� Outlays: Discretionary programs ��������������������������������������� Mandatory: Medicaid ����������������������������������������������������������� Social Security �������������������������������������������������� Supplemental Nutrition Assistance Program  Premium assistance tax credits ���������������������� Proceeds from GSE Preferred Stock ��������������� Earned Income Tax Credit ������������������������������� Medicare ����������������������������������������������������������� Unemployment compensation ������������������������� Supplemental Security Income program �������� Federal retirement ������������������������������������������� Child Tax Credit ����������������������������������������������� Troubled Asset Relief Program ����������������������� Deposit Insurance Fund ���������������������������������� Other ����������������������������������������������������������������� Total mandatory ������������������������������������������� Net interest 1 ��������������������������������������������������������� Subtotal. –71 2 –2 –6 –* * –1 –7 –6 –18 –104 –7 –154 –219 8 –9 6 1 3 3 * –5 –1 –* –3 1 * –1 3 –* 3 14 11 –12 7 –5 5 3 1 –3 –1 –1 –3 1 1 –4 –* –* 2 49 11 –12 6 –7 6 2 1 –3 –1 –2 –3 1 * –4 –3 2 4 50 11 –11 7 –3 4 2 –2 –2 –1 –2 –3 1 –* –2 –2 1 2 29 12 –10 6 –2 3 2 * –2 –1 –2 –3 1 –* –2 2 1 6 21 13 –8 6 –3 3 4 2 –1 –2 –2 1 1 1 –1 14 1 17 47 13 14 14 15 –7 –6 –5 –4 6 6 7 8 –4 –5 –7 –8 3 3 3 3 4 4 4 4 4 5 8 10 –1 –1 –1 –1 –2 –2 –2 –2 –2 –2 –2 –1 1 1 1 1 1 .5% 3.  CHANGES IN DEFICITS FROM THE 2014 BUDGET (In billions of dollars) 20142013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 2023 2014 Budget deficit ���������������������������������������������������������� Percent of GDP ������������������������������������������������������������� Enacted legislation: Consolidated and Further Continuing Appropriations Act of 2013 ���������������������������������� Debt service �������������������������������������������������������������� Subtotal. 65 74 109 ..0% 4. *$500 million or less.

and the proposed Budget replaces sequestration. Projected real GDP growth in the long run is below the historical average growth for 5 .S. Unemployment was expected to decline as the economy recovered. leading to a reduction in the forecast for growth during 2013. maintains these assumptions with minor modifications to take account of evolving conditions since the last forecast. the Administration projects economic growth to continue in the second half of 2013 and to pick up in 2014. As various headwinds die down. exports. which reduced State and local tax revenue significantly. Notably. Following the resumption of real GDP growth. which subtracted from overall U. would continue. China and other emerging countries have also experienced some slowing in their very rapid growth rates of the past decade.000 jobs per month and after real GDP fell at an annual rate of 8. In addition.0 percent in October 2009 to 7. and unemployment is now projected to decline somewhat more rapidly than in the Budget projections. and interest rates. the private sector began adding jobs. The unemployment rate has declined from its peak of 10. The American Recovery and Reinvestment Act was passed soon after the President took office. Additional actions by the Administration and Congress. the housing market has begun to contribute to the recovery. The decline in the unemployment rate over the past several months has been more rapid than expected when the 2014 Budget forecast was finalized.9 percent in the fourth quarter of 2008. which began in 2009. as have automatic fiscal stabilizers such as the unemployment compensation system. real GDP has risen for 15 straight quarters. The global slowdown has reduced the growth of U. the economy was under additional fiscal pressure during the first half of 2013. Since 2009. As a consequence. Assuming adoption of the President’s proposed fiscal plan. The 2014 Budget forecast projected that the economic recovery. Private-sector employment has increased in each of the past 40 months. although it will take a further period of healthy job growth to fully recover from the losses due to the recession. GDP growth during the fourth quarter of 2012 and first quarter of 2013. the economic downturn. completed in late May. the economy has faced serious headwinds that have held down the growth rate and limited gains in employment. but to rise gradually in the medium term. further sustained demand and fostered continued growth. Interest rates were expected to remain quite low in the near term. the Administration expects more rapid growth in 2014. and through the first quarter of 2013. sequestration has imposed a drag on growth in recent months. The Administration’s prompt action helped to reverse these precipitous declines and opened the way to a sustained economic recovery.ECONOMIC ASSUMPTIONS This Mid-Session Review (MSR) updates the economic forecast from the 2014 Budget. the Administration’s forecast is based on the long-run trends expected for real GDP growth. Although Administration actions helped spark the ongoing recovery.6 percent in June 2013. forced fiscal consolidation at the State and local government level because State governments generally face balanced-budget requirements. Beyond 2018. culminating in the passage of the temporary payroll tax holiday as part of the Tax Relief. and housing starts and home prices have rebounded over the past two years. The steep decline in the housing market ended in 2009. Likewise. Unemployment Insurance Reauthorization and Job Creation Act in December 2010. The MSR forecast. price inflation. and inflation was expected to remain moderate. Administration policies contributed to the economic revival.S. at a time when we were losing more than 800. Several European countries are experiencing slowing or negative growth as they have engaged in fiscal austerity measures to address their deficit and debt problems. Congress has not yet acted on the comprehensive plan that the President proposed to replace sequestration with long-term deficit reduction. although the MSR continues to assume that the sequestration will be reversed going forward.

506 11. The growth rate is projected to average 3.9 1.646 10.4 5.295 6.2 2.768 4.  ECONOMIC ASSUMPTIONS 1 (Calendar years.350 Chained price index (2005 = 100).685 16.8 237.9 1.7 2.5 5.676 9.3 4. They are summarized in Table 2. eventually stabilizing at 5. as labor market conditions improve.3 2.593 13.9 1.594 1.124 3.3 4.2 2.3 4.415 1. Beyond 2018.5 4.6 2.2 Percent change.932 18.0 269. With continued growth.0 1.9 1.3 2.562 12.252 1.3 121.2 2. dollar amounts in billions) Actual 2011 2012 Projections 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gross Domestic Product (GDP): Levels.9 4.2 2.4 percent during 2014.4 3.9 2.2 2.3 percent per year in 2021-2023.297 14. fourth quarter over fourth quarter: Current dollars ����������������������������� 4.498 9.6 136.984 21.2 119.518 1.4 5.9 1.9 Incomes.969 20.227 5.5 3.2 2. year over year ������� 3.289 14. real GDP growth is projected to moderate.4 115.2 2. chained (2005) dollars �������� 13.2 2.841 7.9 1.076 15.5 2.301 1.057 17.5 281.2 2.5 4.166 1.907 8.718 17.5 5.4 2.919 22.725 7.3 2.0 5.305 15.5 percent for the three years from 2015 to 2017.9 1.477 3.982 18.3 242.2 .2 2.262 7.7 275.4 247.734 5. chained (2005) dollars �������� 1.0 3.2 2.3 4.4 percent.7 253.6 MID-SESSION REVIEW the United States because of an expected decline in the growth of the labor force as the population ages. three-tenths of a percentage point below its level in June.9 1.5 3.9 1.804 1.947 10.3 1.2 2.1 2.3 Chained price index (2005 = 100) ��� 2.2 2.5 2.914 1.5 Percent change.5 2.3 2. Table 2.4 3.007 20.921 10.6 123.661 3.1 3. which is the same rate as in the Budget.5 287.9 1.2 2.784 15.1 1.4 2.5 4.833 11.820 4.0 258.240 17.0 3.9 1.4 2.868 11.6 232.0 3. chained (2005) dollars �������� 2.372 13.249 5.998 1.680 12.5 4.881 3.7 141.299 13.6 1.619 1. Unemployment: The unemployment rate is projected to reach 7.9 1.0 4.330 3.255 10.2 2.9 126.522 8.4 2.3 Percent change.308 4.1 1.9 Percent change.0 5.873 23.0 1.521 8.9 1.842 3.4 117.9 1.9 1. discouraged workers are expected to rejoin the labor force. Real Gross Domestic Product (GDP): Real GDP is expected to rise by 2.2 2.9 229.5 1.121 17.8 2.8 1.2 2.9 1. The average growth from 2013-2018 is slightly below what was published in the Budget. dollar amounts in billions: Current dollars ����������������������������� 15. The growth rate is steady at 2.3 Chained price index (2005 = 100) ��� 2. billions of current dollars: Domestic corporate profits ����������� Employee compensation �������������� Wages and salaries ����������������������� Other taxable income2 ������������������ 1.9 1.5 5.7 131.308 16.9 1.060 9.388 8.861 14.319 8.873 25. annual average ������������������������� 113.4 4.609 1.389 1.566 6.935 Real.1 138.793 Consumer Price Index (all urban): 3 Level (1982–84 = 100).8 1.5 3.3 4.9 1.4 1.853 24.467 13.739 5.4 percent during the four quarters of 2013 and to increase 3.5 264.2 2.9 2.5 5. fourth quarter over fourth quarter ������������������ 3.3 Real.843 16.5 3.3 128. year over year: Current dollars ����������������������������� 4.3 Real.832 9.1 133. Unemployment is projected to decline at a moderate pace reflecting the expected pace of real GDP growth and because.4 4. annual average ������������������������������������� 224.524 17. ECONOMIC PROJECTIONS The MSR economic projections are based on information available through late May 2013 and assume adoption of the policies in the President’s Budget.5 4. the unemployment rate is projected to fall.3 percent by the fourth quarter of 2013.

7 percent.3 3. 4 Percentages apply to basic pay only. the Congressional Budget Office (CBO).4 5. 6 Average rate. excluding food and energy prices.0 1.4 Federal pay raises. Percentages for years after 2014 have not yet been determined.6 percent in 2013.3 4.8 7.4 5.4 5.6 3.5 6. and proprietors’ income components of personal income. For 2013.6 0.1 3. It is expected to begin to rise in 2015 and to reach 3. dollar amounts in billions) Actual 2011 Projections 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Unemployment rate.0 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Interest rates.4 5.4 5.8 3. percent: Military4 ���������������������������������������� Civilian5 ���������������������������������������� 1. Core inflation. percentages to be proposed for years after 2014 have not yet been determined. corporate profits have risen as a share of total income.2 percent per year.4 5.2 4. while the share for labor compensation is below its long-run average. dividend. largely because of the assumption that the sequester will be replaced by the President’s package of alternative deficit reduction proposals before the end . Inflation is presently below the Federal Open Market Committee’s (FOMC) target. As a result. secondary market (bank discount basis). 2 Rent.9 percent for 2014 onward. and to reach 5. The wage share (which excludes fringe benefits) is also expected to recover from its recent low level in step with the increase in compensation. percent: Fourth quarter level ��������������������� Annual average ���������������������������� 8.0 6.8 8. The three-month Treasury bill rate is expected to average only 0.7 2. Inflation: Overall inflation.7 8.6 5.1 2.6 0.7 5.  ECONOMIC ASSUMPTIONS 1—Continued (Calendar years.2 percent in 2015.0 3.2 1. and the FOMC forecasts is shown below in Table 3.9 6.0 NA = Not Available 1 Based on information available as of mid-May 2013.3 percent during the preceding 12-month period.1 2.0 3.7 5.8 0. that is. but is expected to pick up again as the economy recovers and unemployment declines in the medium term. has declined over the last 12 months to 1. FORECAST COMPARISONS A comparison of the MSR forecast with the most recent Blue Chip consensus (an average of about 50 private-sector forecasts).4 3.3 6.4 5. Another key measure of inflation is the chained price index for gross domestic product. adjusted for the projected rate of inflation. Incomes and Income Shares: Corporate profits have rebounded more quickly than labor compensation (which consists of wages and salaries and employee fringe benefits).0 5. some of this shift in shares is expected to reverse. The yield on the 10-year Treasury note is expected to rise to 3.4 5.7 4. January.7 0.1 0. interest.4 5. and 1.5 1.1 2.8 0. including locality pay adjustments.1 1. interest rates are close to their historical averages in real terms. As the economy recovers. the Administration’s 2.4 percent projected rate of real GDP growth during the four quarters of the year is somewhat above that of the other forecasts.9 7.4 5. civilian. 3 Seasonally adjusted CPI for all urban consumers.3 7. In the long run. from 2.6 4.5 5. 5 Overall average increase.1 7. percent: 91-day Treasury bills6 ������������������ 10-year Treasury notes ���������������� 0.0 percent by 2021. rose in early 2013. In the later years of the forecast. while the share of corporate profits is projected to fall. the CPI inflation rate is projected to be 2.4 0.7 5.4 5.0 1. but it has moderated since then. as measured by the consumer price index (CPI).4 5.1 percent in 2013 and 2014.7 percent by 2020. which is projected to increase by 1. Interest Rates: The projections for interest rates are based on financial market data and market expectations at the time the forecast was developed in late May.7 ECONOMIC ASSUMPTIONS Table 2.0 1.2 3. Labor compensation is projected to rise somewhat relative to total income.

2 percent. The Administration projects that unemployment will average 7. real GDP growth (Q4/Q4) is expected to be 3. the Administration’s projected rate of GDP growth is more conservative than CBO’s forecast.0 to 3.8 percent. but it is within the FOMC central tendency of 3. while average growth from 2013 through 2023 is 0. and 6.1 percentage point higher than CBO.5 percent in 2013.7 percent in 2015. During 2014. . and 6. and again reflects the assumption that the President’s Budget policies are adopted.5 percent.) The FOMC also projects that unemployment will fall. The Administration forecast projects slightly less inflation and slightly higher interest rates than the Blue Chip consensus in the long run.0 percent in 2014.5 percent in 2013. By the fourth quarter of 2015. 7. The Blue Chip consensus is quite similar: MID-SESSION REVIEW 7. which is above the Blue Chip consensus of 2. (The CBO projections—last updated in January—assumed a somewhat higher trajectory for the unemployment rate.1 percent in 2014.4 percent. which would reduce the fiscal drag during the second half of 2013. In 2015 and 2016.5 percent in 2015.8 percent to 6. The forecasts are fairly similar for inflation and interest rates.8 of the fiscal year. 7. Private forecasters expect inflation to rise to between 2 percent to 2-1/2 percent per year for both main measures of inflation. the central tendency of the FOMC forecast ranges from 5.

.873 23..3 2. . Blue Chip = June 2013 Blue Chip Consensus Forecast extended with March 2013 Blue Chip long-run survey..3 4.1 4.1 2. 7.5 2.1 7.8 2..1 2.1 1.9 2.1 2.0 1.1 2.9 1. CBO... FOMC = Federal Reserve Open Market Committee (forecast central tendency date: June 19.5 3...2–7.685 15.8 2.6 3.9 2..3 5. .6 4. ..5 4..5 3.1 1.6 5..3 6.1 2.8–6..3 3...9 1.4 2.4 3.6 1.0 2.7 2.007 20. ..3 2.692 15.0 2.181 19.8 3..7 5.741 19....6 2.0 5..247 21..4 4.3 2.. Budget = 2014 Budget (forecast date: November 2012).5 4.9 3. .3 5.247 23....3 2.224 21.216 25.1 4.2 1..3 0.952 17.6 5..7 2.8 2.7 4..0 2.9 1..839 18.6 1.4 3..2 3.9–3.384 16..3 3.6 4..5 5.. year over year Real GDP: MSR ����������������������������������������������������������������� Budget �������������������������������������������������������������� CBO ������������������������������������������������������������������ Blue Chip1 �������������������������������������������������������� 2.5 2.240 16..7 3.1 2..5 1.6 2.5 1.219 24..8 1.129 23.9 1.0 5.2 4..0 2.8 5.8 1.2 2.2 2.3 2.2 6.9 2.3 2.224 17.873 25.4 2.4 2.4 2..087 20.275 22.3 CBO ������������������������������������������������������������������ 1..5 3..2 2.2 1.6 3.2 2..6 3.1 2..9 2. ...6 3..3–2..5 2..9 ECONOMIC ASSUMPTIONS Table 3.2 2.5 2.178 22.. Sources: Administration.2 2.9 2.3 2.0 3.3 2.0 5.5 2.685 16.9 1..9 2.4 5.3 6.3 2.8 7.2 2..9 3.7 4.664 24.1 1.2 2.4 5.2 2..4 2.5 2.5 7..4 2.6 2..2 2.919 22.705 15...913 19.671 20.9 2.6 3.0 2.9 3.1 2..6 2.6 3.8 2.3 2.7 3.1 1..5 2.5 5....7 MSR = 2014 Mid-Session Review (forecast date: May 2013).6 2.2 2.5 2.9 2.626 21.235 16..1 6. Federal Open Market Committee projections materials..5 2.2 2..3 2.0 5..8 1.2 4.1 2..2 .1 7.1 1...4 5.7 5.1 1.7 6..9 1. .4 3.192 20. 2 Fourth quarter levels of unemployment.4 2.0 3.6 3.3 2.9 2.4 5. percent change.6 5..6 1.1 1.4 2..4 5.1 Consumer Price Index (CPI-U): MSR ����������������������������������������������������������������� Budget �������������������������������������������������������������� CBO ������������������������������������������������������������������ Blue Chip1 �������������������������������������������������������� 2.6 3. June 19. March and June 2013.0 5.3 2.2 2.3 2.2 2..  COMPARISON OF ECONOMIC ASSUMPTIONS (Calendar years.6 2.093 25.3 2.1 7.0 3... 2013...2 2..180 17.0 5.0 3.4 2.6 5.3 3.0 5.. ..4 5.4 4.4 Budget �������������������������������������������������������������� 8..6 3..1 0.5 2. The Budget and Economic Outlook: February 2013.5 2..6 .331 17..4 5..1 0. 2013).3 2..5 2..7 3.3 Budget �������������������������������������������������������������� 2.8 1...4 3.4 2.2 2..6 2.1 3. CBO = Congressional Budget Office February 2013 baseline economic forecast.5 3.2 4..2 2..0 2.2 2.6 5.7 4.. ..2 0.3 2.6 FOMC2 ������������������������������������������������������������� ..853 24.7 3..9 2..9 7.5 6.2 2.1 2..7 4. 1 Values for 2015–2023 interpolated by OMB from annual growth rates..612 23.5 7.4 CBO ������������������������������������������������������������������ 8..7 7.1 2.917 percent change.2 2.9 1..1 3.6 4..7 4.5 GDP Price Index: MSR ����������������������������������������������������������������� Budget �������������������������������������������������������������� CBO ������������������������������������������������������������������ Blue Chip1 �������������������������������������������������������� 1. .7 5.6 2.1 0.0 3.117 26. ..1 0..5 3.4 3. Aspen Publishers.984 21.4 1..2 2.3 2..5 3.2 0.4 3..9 1.149 16.1 0.3 2. Blue Chip Economic Indicators.1 6.8 1.4 2.2 2.2 4.1 0...5 2.9 1.....3 2.7 4.1 5..2 0.1 3..0 2.4 2.8 1.0 2.0 2.2 2.2 2..1 2.2 4.5 3.4 4.8 2.2 2.2 Blue Chip1 �������������������������������������������������������� 1.607 22.0 3.9 1.4 5.1 3.0–3. .5–6..3 1.. .057 17...0 5.7 6..7 3.9 2.1 2.765 25.8 5. .3 annual average in percent Unemployment Rate: MSR ����������������������������������������������������������������� 8..3 1.0 2.6 5...9 2.2 2.1 1.7 5....4 5..3 2.9 1.0 4.5 5.7 2.6 2.099 24.0 6.5 FOMC �������������������������������������������������������������� .9 1..1 0.4 2..8 1.1 0.2 3.6 5..2 4.6 3..2 2... dollar amounts in billions) Nominal GDP: MSR ����������������������������������������������������������������� Budget �������������������������������������������������������������� CBO ������������������������������������������������������������������ Blue Chip1 �������������������������������������������������������� 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 15.9 1.982 18...253 26.4 0.4 2.4 5. Interest Rates: 91-Day Treasury Bills (discount basis): MSR ������������������������������������������������������������� Budget ���������������������������������������������������������� CBO �������������������������������������������������������������� Blue Chip1 ���������������������������������������������������� 10-Year Treasury Notes: MSR ������������������������������������������������������������� Budget ���������������������������������������������������������� CBO �������������������������������������������������������������� Blue Chip1 ���������������������������������������������������� 0..1 1.8 1.1 0.2 2.935 18. fourth quarter over fourth quarter Real GDP: MSR ����������������������������������������������������������������� 1.1 1.2 4.2 2.... 2.4 5.0 3.1 7...3 Blue Chip1 �������������������������������������������������������� 8.7 4.5 3.3 2.4 2..969 20.2 0.863 16.4 5.2 5.9 1.7 5.7 2.4 2.2 2. .3 2..8 4..

.

Over the 10-year budget horizon. TECHNICAL CHANGES Technical revisions in the estimates increase receipts by $110 billion in 2013 and $27 billion in 2014. technical revisions increase receipts in some years and decrease them in others. other sources of income. reducing 2013 receipts by $46 billion. Changes in the forecasts of GDP and other economic measures that affect the profitability of corporations are primarily responsible for the reduction in 2013 in corporation income taxes. The increase in receipts in 2013 is mostly due to a $101 billion increase in individual income taxes. account for most of the reduction in this source of receipts. for a total reduction of $424 billion over the 10 years from 2014 through 2023. Revised economic assumptions partially offset this increase. $40 billion in 2014. In each subsequent year. Revisions in the forecasts of GDP. which are more than offset by upward re-estimates of individual income taxes. Reductions in the forecasts of wages and salaries and proprietors’ income. These reductions are partially offset by net increases of $40 billion attributable to technical revisions and to changes in the estimates of the Administration’s proposals and the provisions extended in the adjusted baseline. which is partially offset by a $27 billion increase in receipts attributable to technical factors. Changes in the estimated effect of the Administration’s proposals on receipts offset the reduction attributable to revised economic assumptions by an additional $2 billion. The $11 billion net reduction in 2014 receipts reflects a $40 billion decrease in receipts attributable to revised economic assumptions. respectively. social insurance and retirement receipts. the largest components of social insurance and retirement receipts. revisions in the economic forecast reduce collections of individual income taxes and social insurance and retirement receipts by $444 billion and $200 billion. nonwage sources of personal income. The net increase in receipts over the 10-year budget horizon is primarily due to net downward re-estimates of corporation income taxes and miscellaneous receipts. collections to date and other information. interest rates. resulting in a $384 billion decrease in receipts over the 10-year budget horizon (2014 through 2023). resulting in a net increase in receipts of $21 billion over the 10-year budget horizon. revisions to the economic forecast have the greatest effect on individual and corporation income taxes. and the remaining 11 . The $384 billion reduction in receipts over the 10-year budget horizon is primarily due to receipt losses of $424 billion attributable to revisions in the economic forecast. Revisions in the economic forecast also reduce collections of social insurance and retirement receipts by $7 billion in 2013. The net increase in 2013 receipts is in large part attributable to the effect of technical revisions based on new tax reporting data. attributable in large part to more recent collections data. In later years. ECONOMIC CHANGES Revisions in the economic forecast reduce receipts by $46 billion in 2013. The reductions in individual income taxes and social insurance and retirement receipts are partially offset by increases in corporation income taxes of $241 billion. and $23 billion to $71 billion in each subsequent year. which increase receipts by $110 billion. the MSR estimates of receipts are below the Budget estimates by amounts ranging from $15 billion to $69 billion. and proprietors’ income account for most of the downward revision in these two sources of receipts.RECEIPTS The Mid-Session Review (MSR) estimates of receipts are above the Budget estimates by $65 billion in 2013 and below the Budget estimates by $11 billion in 2014. which are the tax base for Social Security and Medicare payroll taxes. Reductions in the economic forecast for wages and salaries. reducing those sources of receipts by $25 billion and $14 billion. respectively. The reduction in individual income tax receipts is primarily attributable to reductions in the forecasts of wages and salaries and nonwage sources of personal income. In 2013. and imports reduce all remaining sources of receipts by a net $21 billion.

12 MID-SESSION REVIEW sources of receipts. and increased assistance for qualified tuition and related expenses provided by the American Opportunity Tax Credit.712 3....196 4... the proposed extension of these provisions affects both outlays and receipts. which reflect the revised economic forecast and technical re-estimates based on more recent collections data and other information. beginning in 2018. sions are refundable (taxpayers may receive payments in excess of their tax liability).226 4.. Table 4. rather than a reduction in the total relief provided to individuals and families. . Because these provi- REVISIONS IN PROPOSALS Revisions in the estimates of the Administration’s proposals increase receipts by a net $11 billion over the 10 years. .. changes due to technical reestimates ������������������������������������������� 110 27 –9 –18 –2 Changes in provisions extended in the adjusted baseline due to economic and technical revisions ������������������������������������� . . .406 4.464 4.  CHANGE IN RECEIPTS (In billions of dollars) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20142023 20142018 2023 2014 Budget estimate �������������������������������� 2. These revisions. This reduction in the cost of extending these provisions is in large part attributable to a reallocation of a portion of the cost from receipts to outlays.....561 3.... REVISIONS IN EXPIRING PROVISIONS EXTENDED IN THE ADJUSTED BASELINE The Budget’s adjusted baseline permanently continued the tax relief provided to individuals and families under the American Recovery and Reinvestment Act of 2009 that was extended only through tax year 2017 under the American Taxpayer Relief Act of 2012..974 4...220 Changes in current law receipts due to revised economic assumptions: Individual income taxes ���������������������������� Corporation income taxes ������������������������� Social insurance and retirement �������������� Other ���������������������������������������������������������� Total..777 3.669 4. Changes in proposals due to economic and technical revisions ������������������������������������� Total change in receipts ������������������ * 65 2 –11 –4 –47 –1 –46 –2 –27 2014 Mid-Session estimate ����������������������� 2...285 3.152 *$500 million or less..... changes due to revised economic assumptions �������������������������������������� –25 –14 –7 –* –37 9 –10 –1 –44 27 –16 –2 –31 22 –16 –2 –28 24 –17 –2 –31 23 –17 –2 –41 24 –20 –2 –49 25 –26 –3 –55 27 –22 –3 –59 29 –26 –3 –69 31 –31 –3 –171 105 –75 –8 –444 241 –200 –21 –46 –40 –34 –26 –23 –27 –39 –52 –52 –59 –71 –149 –424 7 –15 12 3 5 7 –15 14 –4 4 7 –15 15 –23 4 6 –16 13 1 4 4 –16 19 4 3 –16 –17 21 7 2 102 –75 52 –88 18 110 –155 135 –103 34 11 5 –12 9 14 –4 9 21 * 1 2 2 2 2 * 8 * –15 3 –30 5 –58 2 –40 2 –42 5 –69 –6 –146 11 –384 Changes in current law receipts due to technical re-estimates: Individual income taxes ���������������������������� 101 49 31 12 3 Corporation income taxes ������������������������� 5 –9 –19 –17 –16 Social insurance and retirement �������������� 7 10 9 10 11 Miscellaneous receipts ������������������������������ –6 –24 –34 –29 –5 Other ���������������������������������������������������������� 4 1 3 4 5 Total. and by $8 billion over the 10 years....023 3. 2014 through 2023.. ..332 3.. are the net effect of relatively small revisions in the estimates of a number of provisions.761 3. The technical revisions in individual and corporation income taxes and in social insurance and retirement receipts are in large part attributable to more recent collections data and revisions in the tax models based primarily on updated tax data for prior years.516 3.034 3.909 5..959 4..709 4. This tax relief includes increased refundability of the child tax credit..733 3. Revisions in the estimated cost of extending these provisions increase receipts in each year.. expansions in the earned income tax credit for larger families and married taxpayers filing a joint return. This reallocation reflects the revised economic forecast..951 5. current collection experience and updated tax data for prior years.. 2014 through 2023... The technical revisions in miscellaneous receipts primarily reflect changes in the estimates of various penalties based on more recent information...

EXPENDITURES
Outlays for 2013 are now estimated to be
$3,536 billion, $149 billion lower than the
2014 Budget estimate, reflecting slower-thanexpected spending across a range of discretionary and mandatory programs, due in part
to the implementation of across-the-board
spending cuts required by the Budget Control
Act (BCA) for 2013, as well as higher-thanexpected dividend payments to Treasury from
Fannie Mae and Freddie Mac. Relative to the
Budget, projected total outlays have decreased
by $4 billion in 2014, but increased by $148 billion over the 10-year budget horizon, 2014 to
2023, primarily in the last five years. These
increases in outyear spending are primarily
the cumulative upward effect of economic and
technical reestimates in a number of mandatory programs, as well as in interest payments.
LEGISLATIVE CHANGES
The only legislation affecting spending
estimates since the completion of the 2014
Budget was the Consolidated and Further
Continuing Appropriations Act of 2013, enacted on March 26, 2013. This Act provided
final appropriations for the Department
of Defense, the Department of Homeland
Security, and certain other agencies, and extended the continuing resolution providing
funding for the remaining agencies to the end
of 2013. Relative to the estimates in the 2014
Budget, the full-year appropriations increase
outlays by $5 billion in 2013. The legislation
lowers outlays by $8 billion in 2014, with negligible effects over the remainder of the next
decade.
ESTIMATING CHANGES
Estimating changes are due to factors other
than enacted legislation or changes in policy.
These result from changes in economic assumptions, discussed earlier in this Review,
and changes in technical factors. Relative to
the Budget estimates, economic and technical
changes decrease estimated outlays for 2013
by $154 billion, but increase outlays by $156
billion from 2014 through 2023.
Discretionary programs. Outlays for discretionary programs decrease by $43 billion

in 2013 but rise by $21 billion over the next
10 years relative to the Budget as a result
of technical revisions. These changes reflect
lower outlays in 2013 compared to the Budget
for both defense and non-defense discretionary programs, due to the implementation of
across-the-board reductions required by the
BCA beginning in March as well as additional factors producing slower-than-expected
spending patterns. Just over half of the $43
billion reduction in 2013 is in defense programs. The remaining half is in non-defense
programs, most notably in the Departments of
Housing and Urban Development, Education,
Energy, and Health and Human Services, as
well as International Assistance Programs,
outlays for each of which are at least $2 billion below the 2013 estimate in the Budget.
Relative to the Budget, more of the proposed
reversal of 2013 sequestration – as well as
other obligations previously expected to outlay in 2013 – shifts into 2014 and later years.
As a result, spending for non-defense programs rises by a total of $22 billion over 2014
through 2023. Spending for defense programs
falls by $1 billion over this period.
Medicaid. Technical and economic revisions increase projected Federal outlays for
Medicaid by $8 billion in 2013, and by $123
billion over the next 10 years from 2014 to
2023 relative to the Budget estimates. The increase stems primarily from higher projected
benefit payments in 2013, resulting in higher
benefit projections over the 10-year period,
partially offset by projected decreases in medical inflation and in the anticipated costs of
the Affordable Care Act Medicaid expansion.
Social Security. Estimating changes reduce outlays for Social Security by $3 billion
in 2013 and by an additional $85 billion over
the next 10 years. Reductions in 2013 in both
the Old Age and Survivors’ Insurance (OASI)
and Disability Insurance (DI) programs are
primarily due to lower-than-expected numbers of beneficiaries in recent data. Lower
spending in both programs in 2014 and beyond is due primarily to lower inflation and
therefore lower cost-of-living adjustments
(COLAs) in 2014 and 2015 than were assumed in the Budget. Relative to the Budget,
13

14
the projected COLA decreases from 2.2 to 1.1
percent for 2014 and from 2.2 to 2.1 percent
for 2015. Technical changes partially offset
the lower spending due to economic factors,
driven by upward revisions in the OASI program to account for improved mortality assumptions among the elderly.
Supplemental Nutrition Assistance
Program (SNAP). Outlays for SNAP increase by $2 billion in 2013 and $65 billion
over the next 10 years, primarily due to technical factors. The technical changes arise
from higher actual participation in the program than was assumed in the Budget, revised modeling of current and future beneficiaries who are underemployed or out of the
active labor force, and adjustments to better
account for future disaster benefits.
Premium assistance tax credits.
Changes in technical assumptions decrease
estimated outlays for the refundable portion
of the premium assistance tax credit by $43
billion from 2014 through 2023. The estimated decrease in expenditures is the net
effect of several offsetting technical changes,
including adjustments to premium estimates
in the exchanges, revised assumptions for the
Affordable Care Act Medicaid expansion, and
other technical corrections to the model.
Proceeds from Government Sponsored
Enterprises.
Collections from dividend
payments under Treasury’s Preferred Stock
Purchase Agreements with Fannie Mae and
Freddie Mac have been revised upward in
2013, lowering net outlays by $71 billion,
based on the companies’ financial results
through the end of March, including a $50.6
billion increase in the valuation of Fannie
Mae’s deferred tax asset. Collections for 2014
to 2023 have been revised downward to reflect
the change in Fannie Mae’s taxable status, increasing net outlays over 10 years by $34 billion.
Earned Income Tax Credit (EITC).
Estimating changes increase outlays for the
EITC by $2 billion in 2013 and an additional
$32 billion from 2014 through 2023. Most
of the upward revision can be attributed to
changes to economic assumptions for GDP,
personal income, wages, and inflation that
cause more beneficiaries to stay within the

MID-SESSION REVIEW

income eligibility requirements for longer
periods of time. Technical changes also contribute modestly to the increase, as a result
of revisions to reflect actual participation in
the current year and improved participation
projections in the future.
Medicare. Economic and technical changes reduce outlays for Medicare by $2 billion
in 2013, but increase spending by $31 billion
over the next 10 years. Outlays for Medicare
Parts A and D increase substantially over
the next 10 years, while Part B decreases.
The spending increase in Part A is primarily a result of upward revisions to Medicare
Advantage enrollment, as well as other technical changes. The decrease in Medicare Part
B spending is primarily due to increases in
premium receipts and receipts from provider
payment adjustments related to health information technology programs. The increase to
spending for Medicare Part D is due mostly to
higher drug spending and revised enrollment
assumptions compared to the Budget.
Unemployment compensation. Changes
in economic and technical assumptions decrease outlays for unemployment benefits by
$6 billion in 2013. Over 2014 through 2023,
outlays are down by an additional $19 billion
relative to the Budget estimate. The reduction is driven in large part by lower-than-expected rates of insured unemployment relative to actual civilian unemployment rates as
well as lower-than-expected actual spending
than had been assumed in the Budget. In addition, the revised MSR economic forecast for
lower near-term civilian unemployment rates
and the smaller labor force than was assumed
in the President’s Budget contributes somewhat to the downward revision in spending
throughout the Budget horizon.
Supplemental Security Income (SSI).
Estimating changes decrease outlays for the
SSI program by $15 billion over the next 10
years. Most of the downward revision can
be attributed to lower COLA assumptions in
2014 and 2015 as well as lower unemployment rate assumptions relative to the Budget,
leading to fewer projected applications and
awards. Technical revisions to the projected
recipient population and average projected
payments also contributed to the decrease in
SSI spending.

EXPENDITURES

Civilian and military retirement.
Economic changes comprise nearly the entire
$14 billion decrease in spending relative to
the Budget for civilian and military retirement over the next 10 years. The lower COLA
assumptions in 2014 and 2015 explain most of
the decreases for both programs.
Child Tax Credit (CTC).
Estimating
changes decrease outlays for the CTC by $1 billion in 2013 and an additional $11 billion from
2014 through 2023. Most of the downward revision can be attributed to lower actual outlays,
due to fewer CTC claims during the recent tax
filing season. Changes in the economic forecast
for the MSR increased outlays relative to the
Budget in 2015 and beyond by increasing the
number of taxpayers assumed to fall within the
eligible income range for the credit.
Troubled Asset Relief Program (TARP)
housing programs.
Technical changes
lower outlays in 2013 for TARP housing programs by $7 billion relative to the Budget as
a result of adjusting projections to account for
lower spending to date. On May 30, 2013, the
Treasury Department announced a two-year
extension of the Home Affordable Modification
Program that was not assumed in the Budget.
As a result, outlays previously projected for
2013 are now projected to be spent in 2014
through 2020, with total spending over the
budget window virtually unchanged.

15
Deposit
Insurance
Fund
(DIF).
Technical and economic changes lower deposit insurance spending in 2013 by $6 billion, but raise spending over 2014 through
2023 by $5 billion. The short-term reduction
in spending is attributable to fewer bank failures experienced to date than were projected
in the Budget. The outyear spending increase
can be attributed to lower future premiums.
Because of the reduction in current year deposit insurance spending, arising from the
lower projection of future bank failures relative to the Budget, it is expected that there
will be a reduced need to replenish the DIF
and that premiums will be lower in the outyears, Revised forecasts of GDP, inflation,
and interest rates also result in some minor
outyear spending increases.
Net interest. Excluding the debt service
associated with enacted legislation, outlays
for net interest are projected to decrease by
$7 billion in 2013, but increase by $41 billion
over the next 10 years. The reduction in 2013
is largely due to the effects of recent lowerthan-expected inflation in the Consumer
Price Index on interest outlays for inflationindexed securities. The increases in 2016 and
subsequent years are virtually all due to technical revisions to interest accounts, as well as
higher debt service due to estimating changes
in receipts and outlays.

. .449 4.911 4.967 5..778 3.. 1 Includes change in allowance for future disaster costs...773 3.470 5..455 4......660 5 * 5 –8 * –8 * –* * * –* * –* –* –* –* –* –* * –* –* * –* * * –* –* –8 –* –8 –7 –1 –8 Changes due to reestimates: Discretionary appropriations: Defense ������������������������������������������������������������ Non-defense ����������������������������������������������������� Medicaid �������������������������������������������������������������� Social Security ����������������������������������������������������� Supplemental Nutrition Assistance Program ����� Premium assistance tax credits ������������������������� Proceeds from GSE Preferred Stock ������������������ Earned Income Tax Credit ���������������������������������� Medicare �������������������������������������������������������������� Unemployment compensation ���������������������������� Supplemental Security Income program ����������� Civilian and military retirement ������������������������ Child Tax Credit �������������������������������������������������� Troubled Asset Relief Program �������������������������� Deposit Insurance Fund ������������������������������������� Other programs 1 �������������������������������������������������� Net interest 2 �������������������������������������������������������� Subtotal.502 5.....16 MID-SESSION REVIEW Table 5.... enacted legislation ���������������������������������� 3. –71 2 –2 –6 –* * –1 –7 –6 –18 –7 –154 –2 3 8 –9 6 1 3 3 * –5 –1 –* –3 1 * –1 –* 3 –1 4 11 –12 7 –5 5 3 1 –3 –1 –1 –3 1 1 –4 –* 2 2 4 11 –12 6 –7 6 2 1 –3 –1 –2 –3 1 * –4 2 4 * 2 11 –11 7 –3 4 2 –2 –2 –1 –2 –3 1 –* –2 1 2 1 2 12 –10 6 –2 3 2 * –2 –1 –2 –3 1 –* –2 1 6 –* 2 13 –8 6 –3 3 4 2 –1 –2 –2 1 1 1 –1 1 17 * * * * 2 2 1 * 13 14 14 15 –7 –6 –5 –4 6 6 7 8 –4 –5 –7 –8 3 3 3 3 4 4 4 4 4 5 8 10 –1 –1 –1 –1 –2 –2 –2 –2 –2 –2 –2 –1 1 1 1 1 1 .090 4..724 4..685 3.908 4.094 4....990 5.741 4..249 4. 2 * 1 1 –* –* –1 –1 4 7 11 15 23 26 33 41 –1 15 54 –54 32 –16 20 12 1 –15 –6 –7 –16 5 1 –13 3 17 –1 22 123 –85 65 –43 34 32 31 –19 –15 –14 –11 7 5 –16 41 156 Total change in outlays ����������������������������������������������� –149 –4 3 4 2 6 17 23 9 148 Mid-Session estimate ���������������������������������������������� * –* * 26 * –* * 33 41 3...209 5. ..235 5...247 4....536 3. 2 Includes debt service on all reestimates.  CHANGE IN OUTLAYS (In billions of dollars) 20142014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 2023 2013 2014 Budget estimate ���������������������������������������������� Changes due to enacted legislation: Consolidated and Further Continuing Appropriations Act of 2013 ����������������������������� Debt service ��������������������������������������������������������� Subtotal.. reestimates ���������������������������������������������� –22 –21 8 –3 2 .700 *$500 million or less.

SUMMARY TABLES 17 .

5% 21.417 12.406 4.1% 2.847 Outlays ����������������������������������������������������� 3.1% 77.4% 2.282 11.455 4.281 12.4% 22.1% 66.604 24.984 18.135 15.5% 18.2% 2.4% 2.1% 3.0% 22.777 3.911 4.536 3.5% 21.9% 22.0% 75.007 14.271 15.516 40.650 Deficit ���������������������������������������������������� 1.510 14.909 5.4% 22.7% 4.450 2.9% 19.700 20.836 17.362 Debt net of financial assets ��������������������� 10.2% 76.791 12.743 20.5% 76.9% 21.874 14.9% 66.990 5.995 13.6% 2.152 17.087 759 750 626 578 516 496 545 584 566 593 549 2.6% 2.745 18.5% 2.0% 70.294 16.4% 68.7% 22.5% 3.482 46.213 13.7% 70.2% 65.696 19.614 25.9% 22.2% 78.Table S–1.4% 67.741 4.6% 75.842 Gross domestic product (GDP) �������������������� 15.753 21.582 17.  BUDGET TOTALS (In billions of dollars and as a percent of GDP) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014– 2018 2014– 2023 18 Totals 2012 Budget Totals in Billions of Dollars: Receipts ���������������������������������������������������� 2.196 4.9% 77.685 22.0% Deficit ���������������������������������������������������� 7.0% 22.294 17.8% 19.3% 18.041 11.8% Debt held by the public ���������������������������� 72.773 3.0% 18.094 4.632 23.1% 19.0% 69.249 4.0% 21.2% Outlays ����������������������������������������������������� 22.6% Budget Totals as a Percent of GDP: MID-SESSION REVIEW .905 16.5% 67.803 Debt held by the public ���������������������������� 11.666 Receipts ���������������������������������������������������� 15.5% 66.5% 3.6% 76.4% 2.1% 18.551 15.5% 19.669 4.516 3.8% 18.537 3.4% 76.549 16.0% 4.701 16.8% 17.4% Debt net of financial assets ��������������������� 66.733 3.3% 76.717 19.959 4.9% 20.6% 19.2% 22.087 13.081 16.610 15.2% 21.7% 78.285 3.502 5.1% 68.3% 19.023 3.235 5.966 5.

...... 9 –6 * –8 25 –19 1 –10 20 –31 3 –9 12 –34 6 –9 3 –43 8 –8 –1 –42 10 –8 –3 ... . 11 –7 –10 ..... * 10 ..................772 ................ .... * .Table S–2........... 1 –20 .........235 3..............4% 790 3.... 1 3 ....... * –29 ..... 12 –6 –15 –134 19 –44 59 –176 77 –78 6 ..........  EFFECT OF BUDGET PROPOSALS ON PROJECTED DEFICITS (Deficit increases (+) or decreases (–) in billions of dollars) Projected deficits in the adjusted baseline 1  Percent of GDP �������������������������������������������������� 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 735 4....... * * * 1 –31 * 1 –52 * –* –80 1 –3 –118 1 –10 –150 1 –18 –186 1 –27 –224 1 –37 –262 1 –48 –308 1 –61 –360 3 –12 –431 9 –204 –1....028 4.2% 763 3..3% 965 3......6% 654 3.2% 7..0% 3........... December Package proposals ��������� Policy initiatives: Surface transportation initiatives ���������������� Job creation initiatives ��������������������������������� Reductions in overseas contingency operations reserved for surface transportation and job creation ���������������� Early childhood investments ������������������������ Tobacco tax financing ������������������������������������ Other mandatory proposals �������������������������� Reserve for revenue-neutral business tax reform �������������������������������������������������������� Debt service ��������������������������������������������������� Total... –6 –1 –30 6 ... 12 –6 –16 ................... –21 –16 –47 12 –5 –29 –19 –54 6 –12 –35 –21 –59 4 –19 –40 –24 –63 2 –27 –49 –25 –68 2 –35 –57 –26 –73 1 –46 –68 –27 –77 * –58 –81 –29 –82 * –16 –107 –69 –231 45 –202 –401 –201 –594 50 .... 2 5 ....... 12 –7 –9 ... * 43 ......9% 593 2....004 3.... –3 –8 –14 –19 –24 –31 –37 –44 –50 –44 –230 .. * 5 .......................... 1 –1 .9% 686 3.. 1 * 31 2 11 5 9 10 4 14 1 20 1 24 1 20 1 11 1 7 1 31 56 112 63 ...... ............ .. –1 19 .... * –10 . policy initiatives ������������������������������ 19 Additional changes to deficits: Remaining reductions in overseas contingency operations including amounts reserved for additional surface transportation transfers ��������������������������� Revenue proposals available to pay for extension of baseline tax items ���������������� . –6 –18 –25 –29 –24 –28 –73 –75 –100 –114 –102 –492 * 4 6 –6 –7 –9 –25 –27 –29 –31 –33 –11 –158 SUMMARY TABLES Totals 2013 Proposals in the 2014 MSR: 2 Proposals contained in the December Compromise Deficit Reduction Package: Discretionary program reductions ��������������� Health savings ���������������������������������������������� Other mandatory savings ����������������������������� Revenue proposals ���������������������������������������� Immediate investments in infrastructure ����� Programmatic effects of moving to the chained CPI ����������������������������������������������� Discretionary effects of program integrity cap adjustments ���������������������������������������� Debt service and accrual effects ������������������� Total.....3% 594 3.. –16 –12 –41 18 .. ... .9% 1. * 18 ....4% .......2% 582 2....... 2 –11 . –* –23 ..............9% 581 3....

* * 2 1 * 1 3 –1 1 –10 2 –3 * –32 * –5 –1 –43 * –5 –3 –41 * –4 –6 –63 * –2 –9 –111 * –5 –13 –122 * –4 –19 –154 * –3 –25 –175 6 –15 –4 –125 6 –33 –75 –751 Total proposals in the 2014 MSR ������������ 10 12 –57 –122 –181 –220 –272 –316 –367 –460 –536 –568 –2.4% 549 2.  EFFECT OF BUDGET PROPOSALS ON PROJECTED DEFICITS—Continued (Deficit increases (+) or decreases (–) in billions of dollars) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 Proposed BCA disaster relief cap adjustment ������������������������������������������������ Outlay effects of discretionary policy ����������� Debt service and indirect interest effects ���� Total.5% 584 2.519 14 * 84 * 101 * 104 2 107 7 108 15 108 22 109 29 109 35 48 39 15 42 505 25 894 193 14 84 101 107 115 123 131 138 143 88 57 530 1..5% 626 3.6% 496 2.. additional deficit reduction ������������ * .5% 578 3. see Table S-3. MID-SESSION REVIEW . 1 See Tables S-4 and S-7 for information on the adjusted baseline.6% 566 2.1% 2.8% Effect of replacing Joint Committee enforcement with 2014 MSR deficit reduction proposals: Programmatic effects ���������������������������������������� Debt service ������������������������������������������������������� Total effect of replacing Joint Committee enforcement ����������������������������������������������� Resulting deficits in 2014 MSR ����������������������� Percent of GDP �������������������������������������������������� 20 Totals 2013 * $500 million or less. 2 For total deficit reduction since January 2011.1% 516 2.086 759 4.2% 5.Table S–2...4% 545 2.7% 750 4..803 2.966 3..4% 593 2...

357 Policy initiatives: Surface transportation and job creation initiatives ��������������������������������������������������������������������������������� Savings in OCO reserved for initiatives ��������������������������������������������������������������������������������������������������� Early childhood investments ��������������������������������������������������������������������������������������������������������������������� Tobacco tax financing ��������������������������������������������������������������������������������������������������������������������������������� Other mandatory proposals ����������������������������������������������������������������������������������������������������������������������� Reserve for revenue-neutral business tax reform ������������������������������������������������������������������������������������ Debt service ������������������������������������������������������������������������������������������������������������������������������������������������ Total..772 Total deficit reduction ������������������������������������������������������������������������������������������������������������������������������������ –4. policy initiatives ��������������������������������������������������������������������������������������������������������������������������� 175 –176 77 –78 6 ... overseas contingency operations (OCO) and additional changes to deficits ���������������������������� –669 –492 –184 –339 –1. December Package ����������������������������������������������������������������������������������������������������������������������� –202 –401 –201 –594 50 –230 9 –204 –1.036 Memorandum: revenue and outlay effects of enacted deficit reduction and the President’s December Compromise Deficit Reduction Package: Enacted outlay reductions and 2014 MSR spending proposals ��������������������������������������������������������������� Enacted receipt increases and 2014 MSR revenue proposals ����������������������������������������������������������������� –3... 2 5 Overseas contingency operations (OCO) and additional changes to deficits: Enacted reduction in OCO funding ����������������������������������������������������������������������������������������������������������� Remaining reductions in overseas contingency operations ��������������������������������������������������������������������� Other proposals ������������������������������������������������������������������������������������������������������������������������������������������ Debt service ������������������������������������������������������������������������������������������������������������������������������������������������ Total..444 –660 –480 –2. 21 Deficit reduction achieved through March 2013: Discretionary savings 1 ������������������������������������������������������������������������������������������������������������������������������� Upper-income tax revenues ����������������������������������������������������������������������������������������������������������������������� Debt service ������������������������������������������������������������������������������������������������������������������������������������������������ Total achieved deficit reduction ������������������������������������������������������������������������������������������������������������ SUMMARY TABLES 20142023 .684 Total.Table S–3... and additional changes to deficits ������������������� –6.585 December Compromise Deficit Reduction Package Discretionary program reductions ������������������������������������������������������������������������������������������������������������ Health savings ������������������������������������������������������������������������������������������������������������������������������������������� Other mandatory savings �������������������������������������������������������������������������������������������������������������������������� Revenue proposals ������������������������������������������������������������������������������������������������������������������������������������� Immediate investments in infrastructure ������������������������������������������������������������������������������������������������ Programmatic effects of moving to the chained CPI �������������������������������������������������������������������������������� Discretionary effects of program integrity cap adjustments ������������������������������������������������������������������� Debt service and accrual effects ���������������������������������������������������������������������������������������������������������������� Total.  CUMULATIVE DEFICIT REDUCTION (Deficit reduction (–) or increase (+) in billions of dollars) –1. OCO. deficit reduction including policy initiatives.003 –1.354 1 Excludes savings from reductions in OCO.

149 –62 735 215 521 772 –37 654 222 433 683 –29 581 252 329 596 –15 594 300 294 607 –13 582 372 210 584 –1 593 461 132 586 7 686 547 139 668 18 763 621 141 723 40 790 686 103 742 48 965 753 212 898 67 3.892 56 278 547 13 48 107 149 511 1.032 220 .297 6.850 963 296 53 11 123 23 55 14 67 4. appropriated programs ���������� Mandatory programs: Social Security �������������������������������������������� Medicare ����������������������������������������������������� Medicaid ����������������������������������������������������� Other mandatory programs ����������������������� Subtotal.063 1. 3. 3.815 953 598 364 626 2.650 372 9 –105 4.319 821 1.524 3.293 687 622 1.326 8...577 29.004 1.  ADJUSTED BASELINE BY CATEGORY 1 (In billions of dollars) Outlays: Appropriated (“discretionary”) programs: Defense ������������������������������������������������������ Non-defense ����������������������������������������������� Subtotal.122 19. .804 4.786 11.157 4.771 461 9 –107 4.262 2..221 811 3..139 39.104 485 2..306 1.443 1.420 768 685 1.236 222 3 –50 3.453 768 466 251 548 2.227 499 2.Table S–4.777 740 224 59 9 93 15 37 83 23 2..751 435 1.875 454 1.087 220 867 1.517 1.970 547 10 –108 4.036 10 35 85 –15 –450 –837 5.. Federal Reserve System ��� Other miscellaneous receipts ������������������������ Total receipts ���������������������������������������������� 570 201 67 8 79 14 30 82 25 2.125 9.607 1.025 1.071 639 405 655 2.020 215 MID-SESSION REVIEW 1.186 28 92 219 68 222 529 56 194 373 75 273 633 4.060 545 1.642 899 547 339 593 2.988 775 236 58 9 99 17 41 67 48 3.422 4..999 20.218 1.537 809 496 274 502 2.512 851 519 312 554 2.750 1.006 309 50 11 128 24 58 15 72 4.056 –52 7.235 5...607 5.132 242 1.330 686 10 –109 5.476 537 Social insurance and retirement receipts: Social Security payroll taxes �������������������� Medicare payroll taxes ������������������������������ Unemployment insurance ������������������������� Other retirement ���������������������������������������� Excise taxes ���������������������������������������������������� Estate and gift taxes �������������������������������������� Customs duties ����������������������������������������������� Deposits of earnings.450 674 210 59 9 85 18 32 78 24 2.929 Receipts: Individual income taxes ��������������������������������� Corporation income taxes ������������������������������ 1.635 917 282 52 10 112 21 52 7 66 3.262 1.162 952 2.432 868 267 53 10 105 20 48 9 69 3.036 2.344 911 510 807 3.011 612 384 643 2.349 517 2.143 46..262 2..374 13.876 3.499 384 1.060 326 56 12 134 25 61 44 72 4.370 335 1.024 1.076 6..277 677 616 1.203 759 453 725 3.542 300 8 –101 4.707 1.072 6.234 825 253 56 9 101 18 44 28 66 3.135 704 428 702 2.264 665 611 1..028 821 206 933 95 22 Totals 2012 ..984 474 2.916 7.199 7.963 3.972 17.309 699 631 1..082 215 * ..730 12.330 716 644 1.141 621 10 –108 5..111 342 54 12 141 27 65 50 74 4.398 3.572 753 10 –48 5..626 404 1.363 6. mandatory programs ������������� Net interest ���������������������������������������������������� Adjustments for disaster costs 2 �������������������� Joint Committee enforcement 3 ���������������������� Total outlays ����������������������������������������������� 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 671 614 1..694 Deficit ���������������������������������������������������������������� Net interest ���������������������������������������������������� Primary deficit ����������������������������������������������� On-budget deficit �������������������������������������������� Off-budget deficit / surplus (–) ����������������������� 1..378 252 7 –86 3.742 1.389 750 670 1.423 357 1.215 614 617 1..310 279 1.231 654 610 1.360 733 656 1.013 4.271 818 481 759 3..285 627 588 1..

TABLE S–4. These amounts are included as outlays for convenience. 4 Excludes discretionary cap reductions for Joint Committee enforcement.  ADJUSTED BASELINE BY CATEGORY 1—Continued (In billions of dollars) Memorandum. 2 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction.416 20142018 20142023 3.263 2019 714 577 1.348 2022 764 617 1.381 2023 783 633 1.210 2017 685 552 1.320 2021 746 602 1.703 5. 23 .352 7.140 2014 641 516 1. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief. 3 Includes discretionary cap reductions for 2014 through 2021 and mandatory sequestration for 2015 through 2021.187 2016 670 541 1.811 SUMMARY TABLES Totals 2012 * $500 million or less.236 2018 699 564 1. budget authority for appropriated programs: 4 Defense ���������������������������������������������������������� Non-defense ��������������������������������������������������� Total. appropriated funding ����������������������� 670 527 1.089 2.292 2020 730 590 1.157 2015 657 530 1. 1 See Table S-7 for information on adjustments to the Balanced Budget and Emergency Deficit Control Act (BBEDCA) baseline.196 2013 601 539 1.722 6.055 12.

352 3.236 582 641 1.238 601 659 1..020 3.783 11.819 438 1.601 545 570 201 67 8 79 14 30 82 25 2.563 2..966 6..235 1.285 824 254 66 12 115 19 44 28 67 3.342 845 508 –24 825 3...119 9..149 877 2.516 866 268 63 12 119 20 48 9 70 3.023 774 237 56 11 114 17 40 67 49 3.276 622 649 1.271 631 647 1.279 670 10 5.132 242 1..094 215 * 3.911 953 579 362 –5 672 2.110 344 63 14 152 47 65 50 74 4..249 1. 634 2.593 209 MID-SESSION REVIEW Receipts: Individual income taxes ��������������������������������� Corporation income taxes ������������������������������ Social insurance and retirement receipts: Social Security payroll taxes ��������������������� Medicare payroll taxes ������������������������������� Unemployment insurance ������������������������� Other retirement ���������������������������������������� Excise taxes ���������������������������������������������������� Estate and gift taxes �������������������������������������� Customs duties ����������������������������������������������� Deposits of earnings..285 633 592 1.536 851 513 312 .741 1.669 1.094 1.686 29.199 –27 –26 –130 826 3..990 1.409 358 1..333 505 2.010 585 382 –8 676 2.757 462 9 4...314 51 94 315 68 221 528 56 194 373 76 276 639 5..107 613 10 4.384 20.316 7.537 810 496 274 .  PROPOSED BUDGET BY CATEGORY (In billions of dollars) Outlays: Appropriated (“discretionary”) programs: 1 Defense ������������������������������������������������������� Non-defense ������������������������������������������������ Subtotal.502 1.221 584 643 1.310 279 1.059 328 61 14 146 44 61 44 73 4.905 66 306 618 15 57 127 159 580 1..087 220 867 1.223 581 640 1..680 407 1..614 1. Federal Reserve System ��� Other miscellaneous receipts ������������������������ Total receipts ���������������������������������������������� 2013 24 Totals 2012 ...733 915 284 63 13 125 22 52 7 66 3..482 46. 548 2.072 478 2...614 4..155 4.634 12.966 1.238 602 634 1.152 17.700 20.201 491 2.449 6.020 4.645 374 9 4.450 674 210 59 9 85 18 32 78 24 2.455 1.201 713 451 –18 760 3..803 4.134 667 426 –14 735 2..269 763 478 –21 789 3..070 607 403 –11 688 2.496 726 10 5..310 223 3 3..004 311 60 13 140 41 58 15 73 4.953 458 2.469 768 466 251 .266 2.196 1.948 545 10 4.536 384 1.149 –62 759 215 544 797 –38 750 223 528 784 –34 626 253 373 641 –15 578 302 276 584 –6 516 374 141 517 –1 496 462 34 490 7 545 545 * 528 17 584 613 –29 545 39 566 670 –104 521 46 593 726 –133 528 65 549 778 –229 456 93 8..226 617 621 1. mandatory programs ������������� Net interest ���������������������������������������������������� Adjustments for disaster costs 2 ��������������������� Total outlays ����������������������������������������������� Deficit ���������������������������������������������������������������� Net interest ���������������������������������������������������� Primary deficit / surplus (–) ��������������������������� On-budget deficit �������������������������������������������� Off-budget deficit / surplus (–) ����������������������� 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 671 614 1.420 4.561 302 8 4.959 962 298 62 13 136 38 55 14 68 4.279 2.777 739 224 57 10 105 15 36 83 24 3.945 10 35 85 5.415 253 7 3.909 1. 514 2..682 538 1.058 2.Table S–5.180 6.773 899 532 338 –2 647 2.516 40.466 524 2..016 –50 5.151 778 1.396 333 1.406 1.797 4.260 612 664 1..817 6.032 220 .945 858 5.146 12. appropriated programs ���������� Mandatory programs: Social Security �������������������������������������������� Medicare ����������������������������������������������������� Medicaid ����������������������������������������������������� Allowance for moving to the chained CPI ��� Other mandatory programs ����������������������� Subtotal. 3.847 1.251 3.650 1.227 589 649 1.

196 2020 614 600 1.796 5.123 2016 577 567 1. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief.Table S–5.075 2.760 5.161 2018 595 583 1.231 20142018 20142023 2.752 11.178 2019 604 592 1.196 2013 640 563 1. 2 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction.  PROPOSED BUDGET BY CATEGORY—Continued (In billions of dollars) Memorandum. budget authority for appropriated programs: 1 Defense ������������������������������������������������������� Non-defense ������������������������������������������������ Total.232 2022 634 578 1.144 2017 586 575 1.214 2021 624 608 1.835 SUMMARY TABLES Totals 2012 * $500 million or less. appropriated funding ������������������� 670 527 1. 25 .203 2014 631 514 1.212 2023 644 587 1.146 2015 566 557 1. 1 The 2014 MSR proposes changes to the current law caps in the BBEDCA for the reclassification of certain transportation programs and further reductions as part of the Administration’s policy to achieve additional deficit reduction.955 6. These amounts are included as outlays for convenience.

4 2.4 2.9 –* 3.1 0.1 3.7 –0.6 5.7 2.7 * 21.4 5.2 3.2 9.6 –* 2.4 0.4 1.2 0.5 1.2 Deficit ���������������������������������������������������������������� Net interest ���������������������������������������������������� Primary deficit / surplus (–) ��������������������������� On-budget deficit �������������������������������������������� Off-budget deficit / surplus (–) ����������������������� 7.3 18.3 0.4 0.5 0.7 0.7 1.0 5.Table S–6.1 0.4 0.7 2.2 2.5 1.0 1.4 2.6 13.3 0.2 0.1 3.1 0.1 0.9 –0.3 18.9 * 21..9 3.1 3..3 0.6 0.3 0.1 0.4 0.4 0.1 3.8 0.3 19.0 –0.1 2.1 3..1 10.3 0..6 7.4 0.0 3.0 –0.4 18.0 * 22.3 20.2 0.4 0.1 3.6 –0.5 5.5 2.4 13.1 0.3 * 22.0 4.1 0.7 1.1 0.3 0.3 0.3 4.1 0.0 1.1 2. 3.4 1.4 0.4 0.3 19.7 8.1 –0..1 3.4 0.8 4.1 1.2 * 0.4 2.7 3.1 3.2 0.1 10.1 0.3 3.4 * 22.9 2.6 0.3 19.9 –0.0 5.6 0.5 3.1 0.2 2.2 0.2 9.5 13.9 3.1 3.2 2.6 .9 8.2 5.0 1.9 –* 3.6 1..0 4.9 1.8 4. 22.2 5.0 8.2 9.6 0..3 2.3 0.6 0.6 0.5 3.2 3.4 5.4 2.1 0.1 1..8 5.4 1...1 0.6 0.1 3.3 –0.1 0.9 –* 3.4 2.1 3.3 0.1 2.2 13.4 2.6 2.2 0.6 0.4 1.7 2.3 0.9 2.5 * 2.7 * 22. mandatory programs ������������� Net interest ���������������������������������������������������� Adjustments for disaster costs 2 ��������������������� Total outlays ����������������������������������������������� .2 0.9 5. 3.0 5.4 3.4 2.1 0.6 0..1 –0.1 0.0 –0.6 * 21.4 18.0 5.1 0.2 2.2 0..9 3.1 4.4 0.6 0.5 1.6 7.3 0.1 4.5 * 21.2 2.1 9.5 5.3 0.5 4.2 2.5 4.3 0.6 1.3 2.2 1.  PROPOSED BUDGET BY CATEGORY AS A PERCENT OF GDP (As a percent of GDP) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 26 Averages 2012 20142023 4.4 1.2 0.1 3.0 –0.1 1.7 7..2 2.7 7.7 2.2 0.0 3.4 14.3 0.2 3..1 –* 2.3 0.1 0.1 MID-SESSION REVIEW Outlays: Appropriated (“discretionary”) programs: 1 Defense ������������������������������������������������������� Non-defense ������������������������������������������������ Subtotal.1 0.4 1.2 4.6 13.4 3.7 5.4 1.1 2.4 0.2 Social insurance and retirement receipts: Social Security payroll taxes �������������������� Medicare payroll taxes ������������������������������ Unemployment insurance ������������������������� Other retirement ���������������������������������������� Excise taxes ���������������������������������������������������� Estate and gift taxes �������������������������������������� Customs duties ����������������������������������������������� Deposits of earnings.2 2.5 2.1 0.1 0.2 0.5 2.1 0.3 3.3 0..1 6.0 2.7 2.3 3.2 0..7 2.4 0.9 0.2 1..3 * 22.5 2..9 3.4 5.3 * 22.5 0.9 2..1 0.3 13.6 2.3 0. appropriated programs ���������� Mandatory programs: Social Security �������������������������������������������� Medicare ����������������������������������������������������� Medicaid ����������������������������������������������������� Allowance for moving to the chained CPI ��� Other mandatory programs ����������������������� Subtotal.3 3.3 19.4 –0.9 2.0 –0.5 13.5 2.7 3.1 4.3 19.7 –0.4 5..3 4.5 5.1 2.2 9..4 1.0 1.4 6.3 0.0 Receipts: Individual income taxes ��������������������������������� Corporation income taxes ������������������������������ 7.1 8.4 4.6 2. 3.1 3.1 1.0 1.2 0.4 13.0 2.2 * 21.2 2.2 0.6 4.0 1.5 0.1 0.5 1.1 3.1 17.9 5.2 0.9 * 22.6 2.1 0.9 4.4 0.3 0.3 3..2 0.8 2.4 1.9 5.2 15.4 13.9 –* 3.5 1.1 3.4 6.1 0.2 9..1 3.3 19.5 3.5 0..4 3.7 2.1 0..8 3...6 0.7 1..0 1.9 . Federal Reserve System ��� Other miscellaneous receipts ������������������������ Total receipts ���������������������������������������������� 3.3 2.6 1.6 3.2 14.4 3.2 9.7 ..4 1.4 2.9 5.5 1.2 * 0..1 5.4 0.0 –0.8 –0.0 3.4 * 2.5 3.1 18.2 3.6 8.3 0.2 6.7 1.2 3.3 0.3 13.4 2.2 0.8 4.8 * 22.9 1.8 13.6 2.6 0.4 .7 1.6 2.3 1.2 0.4 13..1 1.6 2.3 0.9 4.2 0.1 2.1 2..5 0.

8 3.2 2022 2. 1 The 2014 MSR proposes changes to the current law caps in the BBEDCA for the reclassification of certain transportation programs and further reductions as part of the Administration’s policy to achieve additional deficit reduction.5 2020 2.2 3.7 2013 4.3 3. These amounts are included as outlays for convenience. budget authority for appropriated programs: 1 Defense ������������������������������������������������������� Non-defense ������������������������������������������������ Total.8 5.9 2023 2. 2 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction.3 4.2 20142023 2.7 SUMMARY TABLES Averages 2012 *0.8 2015 3.6 2.7 2.4 7.6 2.1 6.1 6.9 2018 2.5 2.1 2017 3.1 3.7 2019 2.9 2. Such assistance might be provided in the form of discretionary or mandatory outlays or tax relief.8 20142018 3.6 5.0 2.0 6.2 3.0 6.5 7.8 5.3 2016 3.5 2014 3.7 5.9 5.Table S–6.7 5.  PROPOSED BUDGET BY CATEGORY AS A PERCENT OF GDP—Continued (As a percent of GDP) Memorandum. 27 . appropriated funding ������������������� 4.0 3.3 4.05 percent of GDP or less.4 2021 2.9 2.8 2.

.... .. ....... –2 2 . ... 20 –* 20 –* 22 –* 50 –* 55 –* 57 –* 59 –* 60 –1 86 –3 365 Adjustments for provisions contained in the Budget Control Act: Set discretionary budget authority at cap levels ����������������������������������������������������������� Reflect Joint Committee enforcement ����������� Subtotal ������������������������������������������������������ ...... –2 2 .. ..... –1 1 ............Table S–7... –1 1 .... .249 Adjustments for disaster costs: Remove non-recurring emergency costs ������� Add placeholder for future emergency costs 2 ��� ........ 2 28 31 32 33 33 2 158 ........087 735 654 581 594 582 593 686 763 790 965 1..256 –28 –244 –671 –1....... 10 15 15 16 18 20 21 22 23 24 74 184 ...... 1 The baseline permanently continues the tax benefits provided to individuals and families that were extended only through taxable year 2017 under the American Taxpayer Relief Act................. ....... 6 6 ......................151 3.......235 *$500 million or less........004 7..................... –2 2 ......... Total program adjustments ��������������������������� Debt service on adjustments ������������������������� Total adjustments �������������������������������������� . –14 –50 –63 –24 –86 –110 –32 –101 –133 –36 –105 –141 –40 –107 –148 –45 –108 –152 –49 –108 –157 –55 –109 –163 –58 –48 –106 –60 –15 –74 –146 –411 –450 –837 –595 –1. MID-SESSION REVIEW 1.. * –10 3 –27 7 –39 8 –45 9 –49 9 –53 10 –56 10 –58 10 –60 10 –62 10 –169 35 –458 85 Reclassify surface transportation outlays: Remove outlays from appropriated category ����� Add outlays to mandatory category �������������� Subtotal ������������������������������������������������������ –1 1 ........... ........ –1 –2 5 5 3 3 3 3 3 3 11 26 .... –2 2 . –2 2 ... –7 7 ..... ...... –2 2 .... –16 16 ..087 .... 13 ...675 8...500 Adjusted baseline deficit ������������������������������ 1...........  BRIDGE FROM BALANCED BUDGET AND EMERGENCY CONTROL ACT (BBEDCA) BASELINE TO ADJUSTED BASELINE 28 (Deficit increases (+) or decreases (–) in billions of dollars) Totals 2012 BBEDCA baseline deficit ������������������������������ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 729 715 698 740 747 775 859 947 989 1........ 6 * 6 –61 –* –61 –116 –* –117 –144 –2 –146 –157 –8 –165 –165 –18 –182 –145 –28 –173 –149 –36 –185 –155 –44 –199 –98 –51 –149 –66 –57 –123 –643 –1...... ..........028 Adjustments for current policy: Continue tax benefits provided under the American Taxpayer Relief Act 1  Prevent reduction in Medicare physician payments ���������������������������������������������������� Reflect incremental cost of funding existing Pell maximum grant award ����������������������� Reflect Postal Service default on 2013 retiree health benefit payment ����������������� Subtotal ������������������������������������������������������ 3.. –1 1 .......... –2 2 ....... 2 These amounts represent a placeholder for major disasters requiring Federal assistance for relief and reconstruction................ ....... .... 9 ...... –1 1 ...........114 1. ..... .. ................ ..735 ..... ........................ ...

..720 Accelerate manufacturer drug rebates to provide relief to Medicare beneficiaries in the coverage gap ��������������������������� . –11.... . –20 –20 –30 Require prior authorization for advanced imaging ������������������ .190 –3.870 –9. ... ...220 –4..400 –18...... .....980 –17......210 –6..000 –3... –830 –1.....570 Graduate medical education: Better align graduate medical education payments with patient care costs ������������������� ..310 –1...........630 –16..020 –7.780 –2.880 –12... fraud.......... .720 –8............... –780 –930 –960 –990 Better align payments to rural providers with the cost of care: Reduce Critical Access Hospital (CAH) payments from 101% of reasonable costs to 100% of reasonable costs ��������������������� ....170 –760 –1........170 –1..... .360 –25. . and improper payments in Medicare: Reduce fraud.140 –14..320 –2....Table S–8.........980 –130 –150 –160 –170 –190 –190 –570 –1..... –90 –110 –120 –120 Prohibit CAH designation for facilities that are less than 10 miles from the nearest hospital ����������������������������������� .210 –1. –140 –230 –450 Encourage efficient post-acute care: Adjust payment updates for certain post-acute care providers ��������������������������������� ...410 –3. ...... –140 –160 –180 –180 2018 SUMMARY TABLES Totals 2013 ...890 –8.510 –14. ....220 –21.040 –190 –200 –210 –220 –230 –240 –850 –1.290 –123.. –3............ ............330 –1..930 –3....010 –2..... waste....... –40 –50 –60 –60 Cut waste......050 –1.. .420 –4.. –200 –860 –1...580 –11.490 –1...800 –3..140 –7... .. Drug rebates and additional Part D savings: Align Medicare drug payment policies with Medicaid policies for low-income beneficiaries ���������������������������� ..930 –2.310 –16...  MANDATORY AND RECEIPT PROPOSALS (Deficit increases (+) or decreases (–) in millions of dollars) 2014 2015 2016 2017 2019 2020 2021 2022 2023 20142018 20142023 –2.950 29 Savings Consistent with the December Compromise Deficit Reduction Package: Health Savings: Health and Human Services (HHS): Medicare providers: Bad debts: Reduce Medicare coverage of bad debts �������������������������������� ....440 –40..250 –1... and abuse in Medicare ����������������������������� ..450 –9.... .640 –3..100 –1...540 Equalize payments for certain conditions commonly treated in inpatient rehabilitation facilities and Skilled Nursing Facilities (SNFs) ��������������������� ...430 –70 –70 –80 –80 –90 –90 –280 –690 –50 –50 –50 –60 –60 –60 –120 –400 ....260 –12.......540 –79....710 –10.

......620 –2.000 –11.. .. .....060 –2.............. .....600 –6...........000 –50. Medicare structural reforms ������������������������������������ Interactions ���������������������������������������� 2014 30 Totals 2013 ..................... ...... –3.100 .......... . .910 ....960 –290 –8.480 –360 –17.270 –2.660 –1.......... –20 –40 –70 –100 –130 –170 –200 –60 –730 . ...........840 –4. .. ... ..... –250 –370 –3.... .... ............................ .................... –350 –550 –600 –640 –680 –730 –780 –830 –890 –2......  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .... .... –500 ..... ...........790 14...........000 –9........... ..630 ................500 2.140 –2......... .000 –3.480 .....710 –3..820 –590 –50.....770 –8........020 100 –67. .080 –9..000 –13... –350 –500 –540 –580 –630 –690 –750 –820 –900 –970 –2. ........000 1....380 –85. –120 –350 –610 –900 –1....... ....720 –1... ..580 –4.Table S–8................ .............000 –4.....000 –7..... ....240 –1..950 –14.....180 –1......320 . ....610 2.... ... –70 –180 –290 –410 –540 –670 –750 –250 –2....100 –640 –57.........300 1.. .. .580 –360 –22.......160 ... .. .... ..050 –306..140 –6. –320 –750 –1........870 –480 –37..360 5. –290 –820 –1........850 –1............... –220 –380 –390 –410 –440 –460 –490 –530 –560 –600 –1.000 –6..... ... –540 20 –3.....340 ................290 –9.....860 –420 –31....930 –540 –43.. .. ............730 .... . ...860 –19.....520 –1... .............. . ...... . ........ .... .... ................. . .......490 –2.... . .. –350 ... –230 –270 –290 –310 –340 –370 –400 –500 –2.............. ......910 50 –5.... –4.460 ...910 –15.030 –380 –26...... ... ..... ................. ....... .890 –2.....330 –1........ .520 ......500 –11.000 ........ –190 –230 –240 –240 –240 –250 –260 –280 –290 –300 –1.630 –280 –13.......050 .. .. .....470 MID-SESSION REVIEW Encourage appropriate use of inpatient rehabilitation hospitals ��������������������������������� Adjust SNF payments to reduce hospital readmissions �������������� Implement bundled post-acute care payment �������������������������� Additional provider efficiencies: Exclude certain services from the in-office ancillary services exception ��������������������������������� Reduce overpayment of Part B drugs ��������������������������������������� Modernize payments for clinical laboratory services ������������������ Expand sharing Medicare data with qualified entities ������������ Clarify the Medicare Fraction in the Medicare Disproportionate Share Hospital (DSH) statute ���������� Improve payment accuracy for Medicare Advantage (MA): Increase the minimum MA coding intensity adjustment �� Align employer group waiver plan payments with average MA plan bids �������������������������� Total...... .070 –2...... –50 –60 –250 –350 –760 –890 –960 –110 –3.......210 .720 30 –3..480 ... .....560 –1......... Medicare providers ����� Medicare structural reforms: Increase income-related premium under Medicare Parts B and D �� Modify Part B deductible for new enrollees �������������������������������������� Introduce home health copayments for new beneficiaries � Introduce a Part B premium surcharge for new beneficiaries who purchase near first-dollar Medigap coverage ����������������������� Encourage the use of generic drugs by low-income beneficiaries �������������������������������� Strengthen the Independent Payment Advisory Board (IPAB) to reduce long-term drivers of Medicare cost growth ������������������ Total.... . –5.

...... .............. –3......... 480 428 560 –558 15 –1............. 360 ..... ....................330 –420 –1........ .. ........... Medicaid ���������������������� Pharmaceutical savings: Prohibit brand and generic drug companies from delaying the availability of new generic drugs and biologics ����������������� Modify length of exclusivity to facilitate faster development of generic biologics ����������������� Total....... . ..................... –750 –820 –900 –960 –1................. pharmaceutical savings ��� Medicare-Medicaid enrollees: Ensure retroactive Part D coverage of newly-eligible low-income beneficiaries �������� Integrate appeals process for Medicare-Medicaid enrollees ����� Total. ........210 –1........ ... . Medicare-Medicaid Enrollees ���������������������������� 2014 SUMMARY TABLES Totals 2013 .... ...... .. ...140 –640 –5....Table S–8....... waste and abuse in Medicaid ����������������������������� Improve Medicaid drug rebate and payment policies ������������� Expand State flexibility to provide benchmark benefit packages ��������������������������������� Extend the Qualified Individuals (QI) program through CY 2014 �������������������� Extend the Transitional Medical Assistance (TMA) program through CY 2014 �������������������� Total........510 –4...........478 –3..... .................. .. –1... ...... .299 1. .. ......... .......000 ....000 –190 –1........... .....530 –480 –1...410 –1. .... ...785 ........... ...483 . ...... .....750 –4.. ........... –156 –252 –338 –358 –374 –394 –420 –441 –466 –492 –1.801 ... .. ......................... .150 –310 –1.. .001 ........... . –216 –144 ................................055 –5..... ..  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .. ... .. –3... ......... ......... 31 Medicaid and other: Medicaid: Limit Medicaid reimbursement of durable medical equipment based on Medicare rates �������� Rebase future Medicaid Disproportionate Share Hospital (DSH) allotments ����� Begin Affordable Care Act Medicaid Disproportionate Share Hospital (DSH) reductions in FY 2015 ������������ Reduce fraud. .... ..........310 –1. .117 –3........716 –8.........................895 .... –5. ... 10 –740 –50 –870 –100 –1... .....990 –630 –2.................840 –580 –1.....960 ... ..................630 .. .. .......... ... ............ ................724 ......055 –18...... ............ ..... ........090 –3. 405 185 ...........630 .... .. ...... .. –1... –2.... ..... ............ ...................... .. ... .450 –11....110 –1...690 –530 –1........... –1.... ....871 1... ........... –250 –290 –374 –402 –434 –469 –503 –543 –586 –632 –1...... ........ .....017 –1...... ..... .... .109 . ........ –2..... .........755 .....690 ........280 .020 –1..057 –1..691 .. ..... 590 590 . . . .............. .......................... .. ......... –1..280 –14............ –411 –761 –811 –851 –882 –922 –972 –1...... ............. ....

..182 3 –420 –15.......300 –1... –4.. .....244 –3....617 –430 –102 –1....744 ..... –3. –3.543 235 –3........135 –57.......595 .. mandatory funding for Health Care Fraud and Abuse Control Program (HCFAC) program integrity: Administrative costs ���������������������� Benefit savings ������������������������������� Subtotal...300 –1.....300 –1.... HHS health proposals ��������� Office of Personnel Management: Modernize the Federal Employees Health Benefits Program (FEHBP): Streamline FEHBP pharmacy benefit contracting ��������������������� Offer an FEHBP Self+One option and domestic partner benefits ���� Expand FEHBP plan types ����������� Adjust FEHBP premiums for wellness �������������������������������������� Total.. .622 –230 –1........ .000 4...928 7. .916 –48 –5. –33.............. .315 ..573 1.....177 –2....128 50 –20..548 –11 –666 –21... .. . .. –66..694 30 –2...959 235 –4.........604 –80..020 .. .200 –11......... . provide dedicated..715 . health savings ������������������������������ Other Mandatory Savings: Agriculture: Streamline conservation programs ����� Reduce subsidies for crop insurance companies and farmer premiums ����� Eliminate direct payments ���������������� Provide assistance for dairy and livestock producers ������������������������� Provide assistance for specialty crops.Table S–8.....256 –3.300 –5......625 .472 20 –4.. . . –345 –4 –504 –11 –519 –15 –548 –18 –581 –24 –617 –31 –653 –41 –684 –51 –721 –69 –1....740 .......339 ..300 –1......... ...398 30 –2.. –28.. –6..............540 20 –4.300 –1..... ..211 ........ Medicaid and other ���������� Provide administrative resources for implementation ������������������������������ Total. –8..841 .. –3.300 –1...... .......294 –3.. bioenergy and beginning farmers ������������������������������������������� Total..854 303 –450 329 –496 672 –546 706 –599 725 –628 745 –659 765 –690 786 –722 807 –755 829 –789 852 –824 3.... 400 –79.. ....238 –3. .....099 ..216 –6....140 .....389 400 –392.... ..172 –264 . Agriculture ��������������������������� Health and Human Services: Provide dedicated..913 235 –3...289 100 –33...993 –1...320 –60 –793 –34.......411 –104..... mandatory funding for HCFAC program integrity ����� 2014 32 Totals 2013 ...114 20 –4. .....433 20 –4.. –38......280 –3.878 –106.. ........274 –3.....182 250 –15....005 –3.....256 –13.367 –401....716 –29.. .... 400 400 400 400 400 400 400 400 400 400 2.... ..175 –15.. 100 –6..... –1....057 .708 –147 –167 126 107 97 86 75 64 52 40 28 249 508 MID-SESSION REVIEW Accelerate the issuance of State innovation waivers ��������������������� Enact survey and certification revisit fees ���������������������������������� Extend Centers for Medicare and Medicaid Services (CMS) quality measurement ����������������� Total.... .. –74 –140 –157 –167 –180 –195 –211 –227 –247 –538 –1.278 –67... ....410 –34 –725 –29...713 .. 235 85 235 –3....000 ..300 –1..346 –316 –1.. ....601 –154 –997 –48.. –56.... ................... ..598 ...... ..... –3.......444 1..392 20 –4........... ....... 10 –302 30 –1................700 ..... .........302 –3........ ....... ........ ...... –47....467 –2..533 –101 –886 –39.......585 .275 –37.......690 .... modernize FEHBP ����������� Total....................... .. –513 ...... –37 127 –10 –50 –193 –238 –273 –298 –358 –383 –163 –1......300 –1........875 ....011 100 –10. ......... .  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ... ....333 –8...310 –3........... ......

..762 .051 –851 –4..Table S–8.000 .............227 –158 –508 ...083 .012 1.....832 5.525 –6. –50 –120 –125 –150 –170 –185 –200 –215 –225 –240 –615 –1.......778 –2. 387 718 1..778 –2.. ...048 37 –3.325 –2.708 1...680 .112 –25......955 –6. Interior ��������������������������������� Labor: Improve Pension Benefit Guaranty Corporation (PBGC) solvency �������� Improve unemployment insurance (UI) program integrity 1...778 –2.322 1.. –50 .285 –1. ..778 –2. 2 ���������������� Implement cap adjustments for UI program integrity 1..273 –2............640 1.680 .... . 20 –43 25 –2....927 36 –3...017 –7. ..799 ....950 –2...153 –2. –2.569 –2........009 .778 –2... Labor ������������������������������������ Treasury: Implement tax enforcement program integrity cap adjustment 1... ....237 –2.244 –2..279 –2.649 1.........-Mexico Transboundary Agreement on Gulf of Mexico Leasing ������������������ Terminate Abandoned Mine Lands (AML) payments to certified States ���������������������������������������������� Make permanent net receipts sharing for energy minerals ���������� Total.002 ...Civil Programs ������������������������������������ Office of Personnel Management: Increase Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) contributions 1 �������������������� 2014 SUMMARY TABLES Totals 2013 .891 30 –2.... –33 –76 –93 –109 –240 –630 –38 118 36 –18 –551 –1... –132 –44 –197 –44 –196 –43 –224 –44 –254 –45 –277 –47 –286 –49 –300 –52 –309 –53 –303 –175 –1.... –32 –33 –27 –31 –40 –47 –39 –36 –32 –10 –163 –327 ..........197 –2..139 –1.........816 –7...... 3 ������������� Outlays from discretionary cap adjustment (non-add) ���������������� Other Defense—Civil Programs: Increase TRICARE pharmacy copayments ������������������������������������� Increase annual premiums for TRICARE-For-Life (TFL) enrollment �������������������������������������� Total... –4 –21 –53 –80 –109 –138 –169 –201 –234 –158 –1....104 –2.778 –2. .769 1.. –4 –85 –162 –273 –485 –634 –775 –950 –1. –458 –1...300 –2.593 . ......370 –2. –800 –1.267 –20...211 40 –2..008 33 Annual reduction to discretionary spending limits (non-add) ���������� Homeland Security: Reform the aviation passenger security user fee to more accurately reflect the costs of aviation security ����������������������������� Interior: Enact Federal oil and gas management reforms ��������������������� Authorize U.766 –5.. .410 –1.324 –2... ........503 –3.. –4 –81 –141 –220 –405 –525 –637 –781 –917 –1......418 –6.... .433 38 –2.082 13.... ....268 41 –4....... –311 –311 –311 –311 –311 –311 –311 –311 –311 –1....771 .778 –2... 2 ����������������������� Outlays from discretionary cap adjustment (non-add) ���������������� Total.........778 –11..235 –2....009 –5.502 .023 146 –11....052 –5.821 341 –26.675 –1......S... . .778 –2. –200 –1..478 ... Other Defense ...... –10 –37 –41 –40 –30 –25 –21 449 474 –1..374 –18..050 –9.....031 –46.......252 –2....118 –1..  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ..... ....158 –13......912 35 –2.......643 1......... –50 –50 .003 –421 –2.837 39 –2.

...449 –170...366 –200.....083 –62..600 17.000 ..365 –76.436 –5.125 1.107 –685 –5...417 1....760 –52.319 240 45.000 –8. 43 –87 –1..786 –69..748 –77.279 –662 –9..089 –5.170 5.497 –6.783 –215...870 1...Table S–8... 5.625 –4.000 –230.217 –4..375..466 1.. –100 –100 –100 –100 –100 –100 –100 –100 –100 –100 –500 –1.000 –37.040 1.543 –44.. mandatory funding for program integrity ������������������� Annual reduction to discretionary spending limits (non-add) ���������� Offset DI benefits for period of concurrent UI receipt ��������������������� Improve collection of pension information from States and localities ������������������������������������������ Total. 66 594 93 943 98 998 103 1.. ....490 –53 –40....258 –82...880 –58.466 –1. .824 1.883 –5.647 –63.345 –205.227 –559 1.598 .543 –5..908 –990 –19.325 –2.094 –405..330 266 –76 1...502 –129. –65 –131 –133 –136 –139 –140 –142 –145 –148 –151 –604 –1.890 1.543 –7..000 –44. –3..295 –120 –25.282 –5.000 –44.357 –52. savings consistent with the December Compromise Deficit Reduction Package ���������������������������� Accrual effects: Increase TRICARE pharmacy copayments ����������������������������������������� Increase annual premiums for TFL enrollment ������������������������������������������ Total.124 8.809 1. accrual effects �������������������������� 2014 34 Totals 2013 ..330 4.275 –205.006 1. mandatory funding for program integrity: Administrative costs ���������������������� Benefit savings ������������������������������� Subtotal.175 –500 –3.543 –7.112 –16....086 –5.000 ..139 –110.543 –6.760 1..530 1.000 –31.199 –4..923 –5. SSA ��������������������������������������� Other Independent Agencies: Civilian Property Realignment Board: Dispose of unneeded real property ������ Total.750 –2..474 469 4.422 ..258 1..009 –2.884 .361 –577 –7.223 –53.991 –48.978 –120 –29.904 –51.930 –22.850 –619 –6.235 10.457 .516 –67.320 137 1.763 –57..504 –7.063 1.469 ... . provide dedicated.717 –41..000 –50..643 –376 –15.. Other Mandatory Savings ����������� Chained CPI: Adjust indexing and protect vulnerable populations 1 ���������������������������������������� 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .480 –242.. ...326 190 668 –687 –2..  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) Social Security Administration (SSA): Prevent improper use of the Death Master File 1 ������������������������������������ Provide dedicated..850 12........172 –524 –7. –273 –273 –273 –273 –273 –273 –273 –273 –273 –1..190 1.054 109 1..000 –24.934 –35.395 144 1.158 –100 –24...666 –46..800 –3...115 115 1.186 –2..248 MID-SESSION REVIEW Revenues: Reduce the value of certain tax expenditures ��������������������������������������� Implement the Buffett Rule 4 ����������������� Total.584 –149.617 –5...710 –4.....976 –191..940 –80.192 –130 –21.285 –203 –11.178 123 1...490 –40.000 –14.201 .248 130 1.560 870 480 43 –32.046 15. 528 850 900 951 1..620 –8..770 3. ... –25..282 –545.347 –6.118 11..707 –3..704 1.652 –71....630 –593...000 –19.238 –120 –25.404 –30.700 –3.. revenues ����������������������������������� Upfront Investments: Invest in immediate surface transportation priorities �������������������� Total.537 –5...655 –120 –26..437 1.938 –650 –5.260 49... 190 18 521 28 –890 24 –2.......533 .676 –67.968 –47...218 –232 –3..563 –72...092 –2...181 –1.160 –5.

......122 –55.........360 5....725 –9....199 ..125 2...000 3..... ..432 1........723 –7.... ...........663 29. ...........112 1.......125 50 3..... 154 .........309 –37.........879 350 7.......923 9. Packers. .706 ..........650 12.........291 1.......787 1........................... 238 .. ... –20 –27 –27 –28 –29 –30 –31 –32 –33 –34 –131 –291 .000 11.. ..326 –63........... 22 50 10........ 12 ...125 1.. ..709 13..... ...356 2. ....350 9.865 919 .795 1...... 238 .. 6... 237 ..Table S–8.....630 7............444 20.........900 12.....900 12...000 4.. ......... .... ............ ..... ......... . 58 .... early childhood investments ���� Increase tobacco taxes and index for inflation 2 ��������������������������������������������� Infrastructure and Jobs Investments: Invest in rail transportation through reauthorization ���������������������������������� Reserve additional resources for surface transportation reauthorization ���������������������������������� Create infrastructure bank ������������������� Provide funding for Project Rebuild ������ Create a Pathways Back to Work fund � Recognize Educational Success....619 4..062 –43.....581 17............... .......962 –278................900 12..855 630 3...................800 5... . ..... 350 .725 76..909 86...360 900 8...... ....718 –8..... .150 9...... –7.... ... ....... 19..800 5. .238 3..081 7... –235.442 12.767 ....679 1.480 –42........... . ..275 2.... .......... .. Professional Excellence.. .875 82.460 10...... .... .. .271 ............772 2.260 8... . –12...........216 66..075 12..465 ... –4 –4 –4 –5 –5 –5 –5 –5 –5 –5 –22 –47 35 Other Mandatory Initiatives and Savings: Agriculture: Enact biobased labeling fee ��������������� Reauthorize Secure Rural Schools ����� Enact Animal Plant and Health Inspection Service (APHIS) fee ����� Enact Natural Resources Conservation Service (NRCS) fee ��������������������������� Enact Grain Inspection....456 625 6... .643 4..... . ..... .237 10........ .......200 .. –1 762 –1 774 .......................403 ....692 3..... 130 1.. –1 214 .... 625 .110 250 3.. 15.. 10......264 –8...125 1....450 1..285 ....045 1.200 500 .. ..398 174........ –27 –27 –28 –28 –28 –29 –29 –29 –30 –30 –138 –285 ...441 . .....835 15.560 1..235 150 1...510 2...972 8.......000 2.450 11...100 ...750 399 116 4......750 . 242 ...998 2..842 –6......... 2..725 –67. –22 –22 –22 –22 –22 –22 –22 –22 –22 –22 –110 –220 .385 3. 94 ..  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) Additional Mandatory and Receipt Proposals: Early Childhood Investments: Support preschool for all ������������������������ Extend and expand home visiting ��������� Total....... .....225 11........ .037 15.....615 15..000 1......... and Collaborative Teaching (RESPECT) ����� Provide for teacher stabilization ����������� Establish Veterans Job Corps ���������������� Enact Reemployment NOW ������������������� Support first responders ������������������������ Total.365 21..205 –7. 20..925 19.... .... ........ .268 –6..823 . 4.042 10....526 9....773 1. ................. 15.. 200 .906 25. 7.218 ..188 13. 4................. 345 1. and Stockyards Administration (GIPSA) fee ������������������������������������� Enact Food Safety and Inspection Service (FSIS) fee ��������������������������� 2014 SUMMARY TABLES Totals 2013 ..... 237 800 2........343 1...300 31......875 100 375 .844 –9.000 3. . ..756 –78. ........422 4.........650 1.000 11. . 130 ...440 –6.......... ..498 12.. infrastructure and jobs investments ������������������������������������ Savings in OCO reserved for infrastructure and jobs investments (non-add) �������������������������������������������� 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .091 .. ..............

..887 463 3.......686 1.... 43 45 MID-SESSION REVIEW Restore temporary Supplemental Nutrition Assistance Program (SNAP) benefit increase ����������������� Reauthorize stewardship contracting permanently ����������������������������������� Outyear mandatory effects of discretionary changes to the Conservation Stewardship Program ������������������������������������������ Total................. ......778 2.. –9.........739 4.372 .589 4.000 6...678 –8.118 –6........ .657 ....733 33...402 –1........ 2...Table S–8....489 11....874 400 –6. .035 2....683 –9.....097 600 752 180 547 ..915 25......... –3.540 –1........  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ...279 ...264 2....... Education ����������������������������� Energy: Repeal ultra-deepwater oil and gas research and development program ������������������������������������������ Reauthorize special assessment from domestic nuclear utilities 1 �������������� Establish Energy Security Trust Fund ������������������������������������������������ Enact nuclear waste management program ������������������������������������������ Provide HomeStar rebates for energy efficient home retrofits ������������������� Total..... ...935 .... ...... 2..........502 933 5................ 90 170 390 520 720 –1..........781 –14....334 740 260 1...657 –3........... .... .... 60 140 180 200 200 200 200 200 200 200 780 1.209 . 687 ... .....000 8............286 533 7.....089 134 8......766 6...100 2...817 .264 .954 8..324 –1.460 400 381 332 350 239 221 238 163 191 4.....195 –1.....351 –10 193 –13 61 –13 –1 –13 –38 –13 –86 –13 –98 –13 –99 –13 –101 –13 –103 –49 2..820 5... –20 –20 –10 ... –3..772 4.780 ..438 17..394 –1.134 1.912 –10...113 1..020 1...000 –4.. .................... ..387 –4.........061 1....... .. –50 –50 . .079 ........ 492 ...... . .124 –7. ..680 800 –1. 697 5.. . 300 140 1..453 –1... 5 126 176 181 176 164 28 –28 –43 –46 664 739 ......874 ........657 .......................948 2..952 .....494 869 905 1..... –1......975 ...... –10... –200 –204 –209 –213 –218 –223 –228 –233 –238 –243 –1..863 –1...... 8.. ....... ..... Agriculture ��������������������������� Commerce: Develop a national network of manufacturing innovation institutes ���������������������������������������� Education: Reform student loan interest rates ��� Expand Pay-As-You-Earn to all borrowers ���������������������������������������� Reform and expand Perkins loan program ������������������������������������������ Adjust guaranty agency loan rehabilitation compensation ���������� Provide mandatory appropriation to sustain recent Pell Grant increases ����������������������������������������� Overhaul TEACH Grants and replace with Presidential Teaching Fellows �������������������������������������������� Establish the Community College to Career Fund ����������������������������������� Total.. Energy ���������������������������������� Health and Human Services: Reauthorize Family Connection Grants ��������������������������������������������� 2014 36 Totals 2013 ............ ......... .. ........419 –14. .716 2..... .825 . 1 1 1 1 2 2 2 1 –9 –1 ........ .182 1..... ..... 672 1.562 67 –8. –12 .. 38 112 180 186 156 122 102 74 30 ..174 .... .........044 –2....223 41 ........... 866 3... . ........ ...... 11 14 14 4 1 1 .......693 –1.... 11.923 5..296 ...... .... –673 –2.....116 11. .........566 –114 2.800 1.012 –1....... 2..

...... –2 ....016 . –53 –37 –28 –16 –8 .. 414 ........... .989 .. 410 .. –8 ......................... .................  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ..318 7.... ................................ .. ...... ... ............. 177 ................ 860 1........... ....... ..... ............. 8 .. 410 410 . ..... ................ ....... –9 –10 –19 –29 –39 –49 –60 –71 –82 –94 –106 –462 37 Expand child care access ������������������� Make TANF supplemental grant funding permanent and reduce the annual amount available in the TANF contingency fund ����������������� Modernize child support �������������������� Supplemental Security Income (SSI) effects �������������������������������� SNAP effects ����������������������������������� Total.. 66 28 22 15 13 12 11 10 9 6 144 192 ................. ........533 .... –15 –3 1 1 1 16 –17 –1 . ........ 10 140 290 230 190 100 20 20 .................... .. Interior ��������������������������������� Labor: Reform the Federal Employees’ Compensation Act (FECA) ������������� 2014 SUMMARY TABLES Totals 2013 ........ –2 –2 54 39 –142 –53 ... ....................... 747 –3 –33 871 –3 –34 899 –6 –58 936 –7 –74 950 –9 –90 972 –9 –87 966 –8 –85 959 –8 –82 819 –12 –125 3...... 406 683 735 745 749 750 750 750 750 750 3. . ..... ............. 643 .................. 312 .... .. ... .... .. –4 –4 –5 –5 –5 –5 –5 –5 –5 –5 –23 –48 ................... 53 ... .......... ...... 158 .... 159 .. .... .... ... .........867 –53 –543 8........................Table S–8..... ... ... –2 –4 –5 –5 –6 –6 –11 –17 –24 –16 –80 .. 70 328 421 91 755 488 927 743 908 802 900 877 900 893 900 893 900 942 900 932 3. . . ...................... 302 ................ .068 .... ..... –500 –500 ..... .. ....581 6. –200 –150 –100 –50 .......... .................. ... . .......... ...000 ...... .................081 2......... .... 320 ................... 247 ............. Health and Human Services �� Housing and Urban Development: Provide funding for the Affordable Housing Trust Fund ����������������������� Interior: Extend funding for Payments in Lieu of Taxes (PILT) ������������������������������� Increase coal AML fee to pre–2006 levels 1 ���������������������������������������������� Reauthorize and reform DOI’s helium program ������������������������������ Permanently reauthorize the Federal Lands Recreation Enhancement Act (FLREA) ����������������������������������� Reallocate State share of NPR-A revenues to fund priority Alaska programs ����������������������������������������� Establish an AML hardrock reclamation fund 1 ��������������������������� Reform hardrock mining on public lands ����������������������������������������������� Repeal geothermal payments to counties ������������������������������������������� Extend the Palau Compact of Free Association ������������������������������������� Reauthorize the Federal Land Transaction Facilitation Act of 2000 (FLTFA) ��������������������������������� Increase duck stamp fees 1 ����������������� Establish dedicated funding for Land and Water Conservation Fund (LWCF) programs ��������������������������� Total... 280 ......................................... –3 –4 –5 ........ .. .... –9 ............................. –152 –110 –94 –64 –33 –21 –6 ... –28 –4 –28 –4 ....... ............................452 7. –3 ...... 2..... ........... –453 –480 ........ ..

..569 –6.414 800 –1....046 .... ...000 –11.875 –2.547 3.............. –3. .......802 –8..903 ... –696 –727 –759 –794 –826 –851 –878 –903 –929 –957 –3. ....529 –5..320 . . –4. ...............814 15................111 1.. ...Table S–8... ........ Labor ������������������������������������ Transportation: Establish a mandatory surcharge for air traffic services 1 ������������������������� Establish a co-insurance program for aviation war risk insurance ����������� Reduction in interagency ocean freight differential reimbursement as a result of food aid reform ��������� Total... . –12 –62 –12 –84 –12 –76 –12 –65 –12 –51 –12 –35 –12 –44 –12 –53 –12 –71 –12 –81 –60 –338 –120 –622 ..134 –3....... .. ........ Transportation ��������������������� Treasury: Increase levy authority for payments to Medicare providers with delinquent tax debt 1 ����������������������� Authorize Treasury to locate and recover assets of the United States and to retain a portion of amounts collected to pay for the costs of recovery ������������������������������������������ Allow offset of Federal income tax refunds to collect delinquent State income taxes for out-of-state residents ����������������������������������������� Establish a Pay for Success Incentive Fund ������������������������������������������������ Provide authority to contact delinquent debtors via their cell phones ��������������������������������������������� Total......135 134 5........  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .....572 4.. MID-SESSION REVIEW Reform the Defense Base Act by establishing a government-wide self-insurance program ������������������ Strengthen unemployment insurance system solvency 1.......... 4.....389 2......... –163 –186 –159 –76 28 153 150 110 71 40 –556 –32 ...971 –6.....733 3........... . –50 –909 –50 –963 –50 –968 –50 –920 –50 –848 –50 –748 –50 –778 –50 –843 –50 –908 –50 –967 –250 –4.. –48 –70 –71 –74 –76 –76 –78 –80 –80 –81 –339 –734 .714 –14.. ........994 2.. 1 1 10 24 40 56 49 42 24 15 76 262 ..... ...014 3..... .....257 2.....559 2.......840 –40....974 –5.608 –500 –8... . ........... 2 �������������������������� Establish a Universal Displaced Worker program 5 ���������������������������� Establish the Community College to Career Fund ����������������������������������� Total................ ........... –214 ...527 –6... 637 ......278 67 –864 ................ ..963 1.. 7..... –3 –3 –3 –3 –3 –3 –3 –3 –3 –3 –15 –30 .... .763 2....194 1.........067 –4............... ....... .. .... .....852 ... ..861 –7.939 933 –3..... ................. –1 –1 –2 –2 –3 –2 –2 –3 –3 –3 –9 –22 ............................. ...... Treasury ������������������������������� Veterans Affairs: Extend round-down of cost of living adjustments (compensation) ���������� Extend round-down of cost of living adjustments (education) ���������������� Exclude Temporary Residence Adaptation grants from Specially Adapted Housing (SAH) grant limit 6 ��������������������������������������������� 2014 38 Totals 2013 . –42 –91 –148 –193 –239 –264 –286 –311 –336 –347 –713 –2....... ...130 2.648 . . . .......257 ........834 400 –3..999 26.... ................... ... ..984 533 –2. .... ...116 2....... –214 –214 637 3....533 .......

.. .Civil Programs: Provide additional accrual payments to the Medicare-Eligible Retiree Health Care Fund �������������������������� International Assistance Programs: Implement 2010 IMF agreement: PAYGO effects �������������������������������� Non-scorable effects ����������������������� Total......... .... .......... . ........... .. . ................ ........ . . 39 Restore eligibility for housing grant adaptation �������������������������������������� Replace housing grant limits with limits to grant type 7 ����������������������� Provide SAH grants to veterans living with family ��������������������������� Extend supplemental service disabled veterans insurance coverage 8 ���������� Expand eligibility for veterans medallion for headstones 9 �������������� Allow for Government furnished headstones 10 ������������������������������������ Increase cap on vocational rehabilitation contract counseling ��������������������������� Make permanent the pilot for certain work-study activities ��������������������� Provide refunds for the Montgomery GI Bill Buy-Up program 11 �������������� Increase annual limitation on new Independent Living cases 12 ������������ Expand authority to provide headstones and markers at tribal veterans cemeteries 13 ��������������������� Cover burial expenses for remains of unclaimed veterans 14 ��������������������� Provide burial receptacles for certain new casketed gravesites ����������������� Total...... ................................................. ................... .. . ....... ....... .................. ................... ..................... ....................... 6 7 7 7 7 8 8 9 9 9 34 77 ... ................. . .070 ...... . 1 1 1 1 1 1 1 1 1 1 5 10 ........... ................. .... .............................. . ..... . ........ 17 31 46 61 78 96 114 133 153 174 233 903 ............... ................. . ............ ..... . ...... ............ ...... .........  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ................................... .. ...... .................... ... .. ......... ...... ................ .......... ... ...... 1 1 1 1 1 1 1 1 1 1 5 10 .... .............................. ................. . ..100 ... .... . ........ ........... . –164 –164 .... ....... ........ ............ ...... .. ................ ........... . ....... .. ....... . 5 5 5 6 6 6 6 7 7 7 27 60 ........................ ................. ..................................... ... .... . .............. ...... .. ................. 3 –27 4 –74 3 –133 1 –179 6 –221 ................... implement 2010 IMF agreement ������������������������������� Office of Personnel Management: Eliminate the FERS Supplement for new employees (accrual effects) ���� Social Security Administration (SSA): Terminate step-child benefits in the same month as step-parent 15 ��������� 2014 SUMMARY TABLES Totals 2013 .... ...Table S–8...... . ... ........ Veterans Affairs ������������������� Corps of Engineers: Reform inland waterways funding 1 ������ Other Defense -... ... ...... ........................ . ....... ....... ........... ....... .. ............ ......... 20 ... ............... ................ –1.. ......... .... .... ........ .... ................... .....994 .... .. . .............. –82 –113 –113 –113 –113 –113 –113 –113 –113 –114 –534 –1... ............... ........... ............ ........................... –164 . ..................................... 1 1 1 1 1 ......................... .. ....... 4 4 4 4 4 .. .. ......... –245 ...... 5 .. .... . ............... ........ . ... . .... ... ............................... ..................... ........... .............. .... . –267 3 –288 3 –313 4 –323 17 –634 27 –2...... .. .. –1...................... ...... .... ... . ..................... .... ............... .994 ...... .......

.... ....848 12.. –5 –24 15 –10 –35 ..... ...... ........................ ................... .........835 –3.... ...........894 1..................... ..... . ...185 2..... ............. ..... –11 –41 ..... 20 30 90 ...835 –3....... ... . .......... .. .... ...... . ...... ....... ....361 35.. ......... –10 –37 ...... ..835 –3..... . .................. –10 –38 .054 4.. ........... .. ....................... .. ...........185 2.... –12 –43 ...............284 –23. 99 24 –17 99 24 –17 . . . ....... .... .822 –903 5... 46 11 –8 53 13 –9 . 74 92 90 .... .. ....... ..... ........ .... –10 –39 . .............459 ......... ..................................185 2.................. 10 10 ....... .... other independent agencies ���������������������������������� Multi-Agency: Provide the Secretary of the Treasury authority to access and disclose prisoner data to prevent and identify improper payments: Labor effects ������������������������������� Treasury effects 1 ������������������������ SSA effects ���������������������������������� Subtotal. –11 –42 .................. –45 –170 15 –99 –375 15 ........... ..........185 2.......... ... .......... ....... ......... ... ............. .... –10 –36 ... .............835 –3.. . Social Security Administration (SSA) ���������������� Other Independent Agencies: Postal Service: Enact Postal Service financial relief and reform: PAYGO effects ���������������������������� Non-scoreable effects ����������������� Railroad Retirement Board (RRB): Allow the electronic certification of certain RRB benefits ������������������ Total.. 140 140 ........................ . .... ..214 5................. ............. ....... ........... ................ . ...... ..... ........... 256 256 582 472 2.................. .... ........057 8... ........ ...835 –7...... –10 –40 ..675 –3......... .......185 2.... ......... 1....... .835 –3...... ... ........185 2........... ............ .716 4..........Table S–8.................................. ........... .835 –3... ......... .......... .......... ........098 ..436 21. .185 2....... ........ –14 –45 –46 –47 –48 –49 –50 –52 –53 –55 –200 –459 MID-SESSION REVIEW Lower electronic wage reporting threshold to 50 employees 16 ����������� Move from annual to quarterly wage reporting ����������������������������������������� Establish Workers Compensation Information Reporting ������������������� Extend SSI time limits for qualified refugees ������������������������������������������ Medicaid effects ������������������������������ SNAP effects ����������������������������������� Conform treatment of State and local government earned income tax credit (EITC) and child tax credit (CTC) for SSI 17 �������������������������������� Total..618 –350 –350 –350 –350 –350 –350 –350 13.................117 –3....  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 . 5 5 ... Provide the Secretary of the Treasury authority to access and disclose prisoner data to prevent and identify improper payments ����������� 2014 40 Totals 2013 .... ......

...708 12.... . ....024 1... ....... ...........623 11...... 390 127 640 372 614 606 261 801 –6 867 –64 836 –54 807 –29 780 –10 766 1.... –639 .......................Table S–8.......... impose Standard/Extra annual enrollment fee.... 2 4 8 15 20 25 30 37 44 49 49 234 .. .... –648 .369 990 807 751 756 28..147 1.147 1....793 8.... tax relief to create jobs and jumpstart growth ����������������������� Incentives for investment in infrastructure: Provide America Fast Forward Bonds 19 ��� Allow eligible uses of America Fast Forward Bonds to include financing all qualified private activity bond categories 19 ��������������� Increase the Federal subsidy rate for America Fast Forward Bonds for school construction 19 ���������������������� Allow current refundings of State and local governmental bonds 20 ������������� Repeal the $150 million nonhospital bond limitation on all qualified 501(c)(3) bonds ������������������������������� 2014 . .....914 33.301 –16.. Public Health Service and National Oceanic and Atmospheric Administration) ������������������������������ Enact Spectrum License User Fee and allow the FCC to auction predominantly domestic satellite services ������������������������������������������� Auction or assign via fee 1675–1680 megahertz 18 ������������������������������������ Establish hold harmless for Federal poverty guidelines �������������������������� Total...................488 2. multi-agency ������������������������ Total. ...... 7....147 1.. –5....597 .147 1..024 4...........854 ... 1 .........599 24.  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) SUMMARY TABLES Totals 2013 Increase TRICARE Prime enrollment fee.......507 3............ ....058 508 218 54 ..... .......825 ......117 1..806 1. –50 .147 1...... 85 . –635 ........ ......... –230 –230 . –383 ..... ............. –244 ...906 1.....456 10..532 –9....... ... ....309 –14.. other mandatory initiatives and savings ������������������������������������������ 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ... .......962 .. –490 ....036 3... .798 ........... 251 794 1. .018 25...587 ...... –80 –150 ........... and deductible/ catastrophic cap adjustments (mandatory effects in Coast Guard.. ........ –631 .......956 5...... .... ............218 –3.... –2...736 58........ –778 ............. 1 3 5 7 9 11 13 16 17 18 25 100 41 Other Revenue Proposals: Tax relief to create jobs and jumpstart growth: Provide small businesses a temporary 10-percent tax credit for new jobs and wage increases 19 ����������������������� Provide additional tax credits for investment in qualified property used in a qualified advanced energy manufacturing project ������� Designate Promise Zones 19 ���������������� Total.... . –643 ... 7...................... ...120 1.... ......... ......874 –1. . –1 –1 .... 25.........988 12...... –702 ......224 –9....075 –4..... –5 –13 –19 –25 –30 –32 –35 –37 –40 –43 –92 –279 –50 –225 –325 –425 –550 –550 –550 –550 –550 –550 –550 –2....191 . .. .. .. –1 –1 ....827 5....990 1...........147 4...147 1.824 19...........026 2..

....217 2... ...  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .. 5 13 14 14 15 16 18 19 20 21 61 155 .......403 13.... .... tax cuts for families and individuals ���������������������������������� 2014 42 Totals 2013 ..079 8. 2 ....... ...... and double the tax credit for small employer plan start-up costs 19 ������������������������������� Expand child and dependent care tax credit 19 �������������������������������������������� Extend exclusion from income for cancellation of certain home mortgage debt ��������������������������������� Provide exclusion from income for student loan forgiveness for students in certain income-based or income-contingent repayment programs who have completed payment obligations ����������������������� Provide exclusion from income for student loan forgiveness and for certain scholarship amounts for participants in the IHS Health Professions Programs �������������������� Total.. .......100 2.....872 1. 2.. ..148 1.................. . .......... 3 5 9 14 20 27 33 41 49 57 51 258 .267 6..402 11.......... .209 25....... incentives for investment in infrastructure ����������������������������� Tax cuts for families and individuals: Provide for automatic enrollment in IRAs.057 3... ....794 3.....264 2..452 4.460 MID-SESSION REVIEW Increase national limitation amount for qualified highway or surface freight transfer facility bonds ������� Eliminate the volume cap for private activity bonds for water infrastructure ��������������������������������� Increase the 25-percent limit on land acquisition restriction on private activity bonds ��������������������������������� Allow more flexible research arrangements for purposes of private business use limits ������������ Repeal the government ownership requirement for certain types of exempt facility bonds ��������������������� Exempt certain foreign pension funds from the application of FIRPTA ������������������������������������������� Total..838 .. 1 1 1 1 3 3 3 3 3 16 16 71 152 238 330 410 459 488 518 549 549 1.. ..................... .171 1...... 3 16 34 52 72 92 113 133 53 515 ..956 2......201 3.... 2 4 8 11 15 19 23 27 32 35 40 176 ..830 2..Table S–8.335 2....600 2.......279 306 ... ....450 2....... 717 1..168 16 438 1.. 1.............748 1. 109 187 196 206 216 227 238 250 263 276 914 2.....081 1....287 1..........666 ..204 2.. including a small employer tax credit..... ...630 1.799 ..131 2..968 2.423 1......... ..047 2... ... 249 947 959 962 962 959 952 945 937 927 4..228 1.......421 ....585 1......764 ..666 2.... ...791 17..... .... .. .398 2.. 2 . ..................... 1.....

..734 .......959 –59.... ... –15.......... ..128 –21.. –12 30 –15 29 –16 27 –17 26 –18 24 –19 23 –20 21 –21 20 –22 18 –60 112 –160 218 ...205 –15........ ....568 –115 –2..263 .....159 ...087 ...924 –7....... ...912 –18.. –92.......349 .. –709 –921 ........818 –1... .123 –1..305 –17..... –37 –53 –55 –59 –61 –64 –68 –71 –74 –77 –265 –619 43 Modify estate and gift tax provisions: Restore the estate......581 –6.... –2..349 –8. ........152 –1......257 –1...231 –7..  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .444 .991 –6. –307 –398 –495 –602 –16......... modify estate and gift tax provisions ����������������������������������� Reform treatment of financial and insurance industry institutions and products: Impose a financial crisis responsibility fee ���������������������������� Require current inclusion in income of accrued market discount and limit the accrual amount for distressed debt ������������������������������� Require that the cost basis of stock that is a covered security must be determined using an average cost basis method ����������������������������������� Total...603 –7...........802 –99..980 .....021 –1. . –266 –803 .... –223 –494 ......... –1.....206 –1..234 –6..369 –1.989 –10...968 –8....... –171 –194 ..588 –6.. ....037 –89 –1..794 –8..840 –62..029 –1.. –197 –335 .. ......067 .... ...... .. .053 –1.....894 ..... reform treatment of financial and insurance industy institutions and products ����������������������������������� Other revenue changes and loophole closers: Increase Oil Spill Liability Trust Fund financing rate by one cent and update the law to include other sources of crudes 2 ����������������� Reinstate Superfund taxes 2 ��������������� Make UI surtax permanent 2 �������������� Tax carried (profits) interests as ordinary income ����������������������������� Eliminate the deduction for contributions of conservation easements on golf courses �������������� 2014 SUMMARY TABLES Totals 2013 ..... ..587 –16.480 –101 –1.....066 –6. –36 –47 –62 –79 –102 –129 –164 –207 –261 –224 –1. ..... –15 –61 –126 –200 –248 –266 –284 –301 –319 –339 –650 –2......590 –120 –2......449 –91 –1.. ...367 –21.. –63 –1.. ....... ................159 –7.......369 –2....Table S–8..970 –1....892 –21.629 –131 –2.839 –7...... ..386 –19..754 –19...470 –7.....034 –23....049 –20................667 ...226 ...743 –22.610 –125 –2.321 –6..542 –109 –2.513 –105 –2.... gift and GST tax parameters in effect in 2009 ���������� Require consistency in value for transfer and income tax purposes ���� Require a minimum term for GRATs  Limit duration of GST tax exemption ��� Coordinate certain income and transfer tax rules applicable to grantor trusts ��������������������������������� Extend the lien on estate tax deferrals provided under section 6166 ������������������������������������������������ Clarify GST tax treatment of HEETs ��� Total...........649 –449 –9. –183 –261 ..358 –1...899 –1.........896 –3.. –237 –581 ... –210 –412 . –21 –3.607 –1............ –6 –21 –42 –67 –95 –126 –160 –197 –236 –276 –231 –1..155 –829 –778 –799 –657 –458 –299 –7.073 –6. ... –251 –683 .......109 –7........001 –1.... –158 –131 . –2.

... ....179 –6..211 –1. .. ................. –6 –76 –80 –82 –85 –90 –93 –96 –99 –102 –329 –809 . ....... .....558 –6.......... –5.. ..........911 .080 .................004 –962 –3... .......231 –6........  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) Restrict deductions and harmonize the rules for contributions of conservation easements for historic preservation ���������������������� Require non-spouse beneficiaries of IRA owners and retirement plan participants to take inherited distributions over no more than five years ����������������������������������������� Limit the total accrual of tax-favored retirement benefits ������������������������ Total....... ......Table S–8........... expand information reporting ��������������������������������� Improve compliance by businesses: Require greater electronic filing of returns ���������������������������������������� Make e-filing mandatory for exempt organizations ����������������� Authorize the Department of the Treasury to require additional information to be included in electronically filed Form 5500 Annual Reports and electronic filing of certain other employee benefit plan reports �������������������� Implement standards clarifying when employee leasing companies can be held liable for their clients’ Federal employment taxes ���������������������� Increase certainty with respect to worker classification ������������������ 2014 44 Totals 2013 .....330 –6.901 ...... ......................... –5 –6 –6 –6 –7 –7 –8 –8 –8 –8 –30 –69 –4 –72 –353 –698 –846 –932 –1...... .... ............... .423 –6.. ....... ..201 –6........ ...... ...... ......... ...901 –8.977 MID-SESSION REVIEW Reduce the tax gap and make reforms: Expand information reporting: Require information reporting for private separate accounts of life insurance companies ������������������ Require a certified TIN from contractors and allow certain withholding �������������������������������� Modify reporting of tuition expenses and scholarships on Form 1098-T 19 ����������������������������� Provide for reciprocal reporting of information in connection with the implementation of FATCA ����� Subtotal... ......011 –924 –1.. .. ...... ............. ..113 –1... ... . –589 –808 –817 –842 –917 –962 –1.... ........ ...420 –2....... ...............020 –1....... ......481 –6.......................836 .334 –6.... .......... .......... ......... ............... –1 –1 –1 –1 –1 –1 –1 –2 –7 . . –31 –134 –179 –218 –227 –238 –248 –258 –268 –279 –789 –2....... .....973 –8.312 –1. .... ........ –8 –11 –16 –22 –26 –27 –28 –31 –32 –33 –83 –234 ............. .... .... ... ......... ...... ....... –86 –224 –369 –517 –668 –699 –660 –612 –563 –513 –1.......264 ............. ........... other revenue changes and loophole closers ��������������������������� 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ......... –25 –58 –99 –135 –141 –147 –154 –161 –168 –176 –458 –1.....................022 –30... .. . ..... .753 –61..... . .......864 –4..... ................. . .............142 –6.. . ..............

........... ... –1 –1 –1 –1 –2 –2 –2 –2 –10 .............. ... . ... .............. ..... –117 ..... ... –168 ........ ....... .......... ............. –4 –77 –359 –704 –852 –939 –1... .... ....... ......... ........... ....... ..... –220 .. ............. .....  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ..... –1 –1 –1 –1 –2 –2 –2 –2 –10 ........... –1 –4 –4 –4 –4 –4 –4 –4 –9 –29 ....825 45 Repeal special estimated tax payment provision for certain insurance companies ������������������ Subtotal......... ..... ....... .. ...............931 –9......... ..... .. ........... ........121 –1....... .. .. ........ –92 .... ........... –78 –114 –138 –174 –208 –227 –232 –233 –234 –235 –712 –1.......................873 .... . .................................. .......... ...... .... ............ –1...................... ..... ... . . ............. improve compliance by businesses ������������������������������� Strengthen tax administration: Impose liability on shareholders participating in “Intermediary Transaction Tax Shelters” to collect unpaid corporate income taxes �������������������������������������������� Streamline audit and adjustment procedures for large partnerships ������������������������������� Revise offer-in-compromise application rules ������������������������� Expand IRS access to information in the National Directory of New Hires for tax administration purposes ������������ Make repeated willful failure to file a tax return a felony ������������ Facilitate tax compliance with local jurisdictions ����������������������� Extend statute of limitations where State adjustment affects Federal tax liability �������������������� Improve investigative disclosure statute ����������������������������������������� Require taxpayers who prepare their returns electronically but file their returns on paper to print their returns with a 2-D bar code ��������������������������������������� Allow the IRS to absorb credit and debit card processing fees for certain tax payments ����������������� Extend IRS math error authority in certain circumstances 19 ��������� Impose a penalty on failure to comply with electronic filing requirements ������������������������������ Provide whistleblowers with protection from retaliation �������� Provide stronger protection from improper disclosure of taxpayer information in whistleblower actions ����������������������������������������� Index all penalties to inflation ������ 2014 SUMMARY TABLES Totals 2013 .......... .... –142 .. –275 .................. ........... –69 ........ ...... –1 –1 –1 –1 –1 –2 –2 –2 –2 –2 –5 –15 ... –302 .. ...... –193 ..... .............. ............. ......... –1 –1 –1 –1 –2 –2 –2 –2 –10 ......131 –4.219 –1. .. .. .... ............ ............... –304 –421 –444 –469 –493 –517 –540 –562 –586 –611 –2..... –1 –1 –1 –1 –1 –1 –1 –1 –1 –1 –5 –10 ....027 –1............................... .......... ....... . ................ –247 ........................ –1 –2 –2 –2 –2 –2 –2 –2 –2 –2 –9 –19 ..............046 . ............428 –2..... ............. ... –16 –17 –16 –17 –18 –19 –19 –21 –21 –21 –84 –185 .....Table S–8........320 –1.... ..... .... –588 ......... ......947 ... .....................

....... . 4 7 9 14 18 24 28 34 40 46 52 224 ..... . ..............................933 –4 –578 –1............... ... .........  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ..... ... ..141 –1. ... .549 –8... .. 4 4 5 5 5 5 6 6 7 7 23 54 .....269 –20. .................. ............. ...............603 –1....................... . –29 –49 –48 –45 –42 –37 –33 –29 –26 –23 –213 –361 .............. strengthen tax administration ������������������������ Total.. ........ ....... ......... ................ ...... ......... ..... ............................. ..... ....... 1 1 1 1 1 . ..... .. ....... ...... .................. ...233 –2............ ....... ................... ....... .......078 –1.. .. ..... . ...........719 –2... .............. .. . ............... .... ... ... ......................... 2 9 18 26 37 46 57 66 76 86 97 136 518 ...... ....... ....... . ............................................. reduce the tax gap and make reforms �������������������� Simplify the tax system: Simplify the rules for claiming the EITC for workers without qualifying children 19 ����������������������� Modify adoption credit to allow tribal determination of special needs ������ Eliminate MRD requirements for IRA/plan balances of $75.. ................ ....... ....... ........... .... .................000 or less �������������������������������������������������� Allow all inherited plan and IRA accounts to be rolled over within 60 days �������������������������������������������� Repeal non-qualified preferred stock designation ������������������������������������� Repeal preferential dividend rule for publicly offered REITs ������������������� Reform excise tax based on investment income of private foundations ������������������������������������� Remove bonding requirements for certain taxpayers subject to Federal excise taxes on distilled spirits....891 –7..399 .... 5 ..131 –1........... ..... ... ........... ........... .... ........... .............555 –2.................... .. ...... ... ........ . 42 562 576 589 599 580 592 606 619 634 2......................... .. wine.... ....................... .......... ... .... 1 1 1 3 3 3 3 2 15 1 3 5 7 9 11 13 15 17 19 20 35 119 .. . . .. . .......Table S–8........................................... ...... .064 –2. –470 –648 –720 –813 –898 –968 –1.. and beer �������������������� Simplify arbitrage investment restrictions ������������������������������������� Simplify single-family housing mortgage bond targeting requirements ���������������������������������� Streamline private business limits on governmental bonds ������������������ Exclude self-constructed assets of small taxpayers from the UNICAP rules ������������������������������������������������ Repeal technical terminations of partnerships ����������������������������������� 2014 46 Totals 2013 .. .... ..059 ... ... .368 5.......883 –2....... ........ .......... ........ . .. . ..... ......392 –2........... ...........184 –3.. . –7 –14 –17 –18 –19 –20 –21 –22 –22 –23 –75 –183 MID-SESSION REVIEW Extend paid preparer EITC due diligence requirements to the CTC ��������������������������������������������� Extend IRS authority to require truncated SSNs on Form W–2 ����� Add tax crimes to the Aggravated Identity Theft Statute ���������������� Impose a civil penalty on tax identity theft crimes ������������������ Subtotal.... ............... .... ..... 46 48 51 69 80 92 97 101 105 110 294 799 .....023 –1. ....................

........ –8.000 1.323 ..Table S–8....946 –242. .. ...... 83 217 350 489 575 624 701 736 729 718 1...175 933 144 –352 –345 2....... ..... ...409 –201.130 298 1.. clean energy. ...071 –102..........320 2......648 ... ...... .555 –25. .......................000 4.657 4....714 5... ... .063 1......458 2.. ............. ....... .....310 47 Addendum. .803 2..212 .. ..541 9..300 8...... .. .332 –157. .... and insourcing and creating jobs: Provide tax incentives for locating jobs and business activity in the United States and remove tax deductions for shipping jobs overseas ����������������������� Provide new Manufacturing Communities tax credit ��������������������� Enhance and make permanent the R&E tax credit ����������������������������������� Extend certain employment tax credits.222 ..835 38. . . ..743 –153... December offer and additional mandatory and receipt proposals ����� 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ...... other revenue proposals 21 ��������� Total................. ...056 ......912 .. ...224 ..... TIGTA �������������������������� Modify indexing to prevent deflationary adjustments ��������������� Total. 71 362 411 488 471 247 217 –108 –66 –37 1..123 1..170 836 3..... ........ 19 103 240 392 516 618 701 729 641 452 1............... ...... –5.. .............. .... .270 4..273 –1... ..........852 –122.. 43 177 664 1.. ....181 13.....742 –177.. ..... 50 283 461 784 1....401 12.380 ....915 2......943 –274. research...... .............. ... . ...011 298 1......256 9......052 298 1.............. ............. .....903 7...617 –65....702 ........411 .  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) Repeal anti-churning rules of section 197 �������������������������������������������������� Total.. . –7...... ........... 379 863 1.. including incentives for hiring veterans ���������������������������������������������� Provide a tax credit for the production of advanced technology vehicles �������� Provide a tax credit for mediumand heavy-duty alternative-fuel commercial vehicles ��������������������������� Modify and permanently extend renewable electricity production tax credit 19 ������������������������������������������������ Modify and permanently extend the deduction for energy-efficient commercial building property ����������� 2014 SUMMARY TABLES Totals 2013 .830 10.298 –31. 3.. ........443 ............... 960 960 ...353 –27. .......... ......072 1.....091 298 1......... 6.342...... 382 578 .543 1..................089 –33.....113 1.645 11.. .....989 9....... 15 .......S.778 3........ simplify the tax system ������� Trade initiative: Extend GSP 2 ��������������������������������������� Other initiatives: Authorize the limited sharing of business tax return information to improve the accuracy of important measures of the economy ��������������� Eliminate certain reviews conducted by the U.....002 13............323 8.957 20................990 –288...... 3. Business Tax Policies Reserved for Revenue-Neutral Reform: Incentives for manufacturing..... ...030 1.. .651 3.. 3 23 95 95 676 187 796 250 911 281 980 295 1. ..........160 1...079 1.... 5 10 10 10 12 12 12 13 14 14 47 112 . .... ..... ..........062 –11..160 99... ...........138 8..005 1.....483 –29... ..... . .709 –21....192 3.. other initiatives ������������������� Total......587 17.801 ..............

–47 –96 –126 –157 –189 –222 –257 –295 –336 –383 –615 –2.160 19.316 –5.268 –1..095 –24. ....084 5.660 1.302 –1.471 154 6.870 ..484 2..358 –2........ 5...272 279 7......667 –2..359 –4.425 –69.315 11.433 –2.....005 .688 –2. clean energy.435 –30.368 7.054 –1..659 5..315 –2.115 –5.. .659 –10.605 –2.832 –8.416 1...363 ....598 76.. 12 12 12 38 12 67 12 96 12 127 12 157 12 188 12 208 12 238 12 256 60 340 120 1. –1.109 –1... 262 730 1..... –133 –229 –240 –252 –265 –278 –292 –307 –322 –338 –1...656 MID-SESSION REVIEW Total..490 66....768 10. incentives to promote regional growth ��������������������������������������������� Reform U.081 –7..975 2... –309 –526 –550 –584 –622 –641 –671 –706 –741 –776 –2.. –3. incentives for manufacturing.. provide tax incentives for transportation infrastructure ������������ Modify tax-exempt bonds for Indian tribal governments ����������������������������� Reform and expand the LIHTC ������������� Total.. –552 –946 –998 –1..Table S–8.. .....866 1.615 2.552 –2..387 24 271 359 510 701 927 1.553 9...919 –5..619 43 8..576 –7..178 1....288 53..644 7...836 5.337 13.810 223 251 311 310 308 304 300 297 296 294 292 1.139 16. international tax system: Defer deduction of interest expense related to deferred income of foreign subsidiaries ���������������������������������������� Determine the foreign tax credit on a pooling basis ��������������������������������������� Tax currently excess returns associated with transfers of intangibles offshore ��� Limit shifting of income through intangible property transfers ������������ Disallow the deduction for non-taxed reinsurance premiums paid to foreign affiliates ��������������������������������� Limit earnings stripping by expatriated entities ������������������������������������������������ Modify tax rules for dual capacity taxpayers �������������������������������������������� Tax gain from the sale of a partnership interest on look-through basis ����������� 2014 48 Totals 2013 . ...779 142. –2. 200 200 200 200 200 200 200 200 200 200 1.110 –8.612 –2. ..126 .729 –4.000 2..284 40..964 .097 1.....826 20 47 109 231 393 588 809 1....938 48 7.660 6. and insourcing and creating jobs ���������� Tax relief for small business: Extend increased expensing for small business ���������������������������������������������� Eliminate capital gains taxation on investments in small business stock ���� Double the amount of expensed startup expenditures ���������������������������������� Expand and simplify the tax credit provided to qualified small employers for non-elective contributions to employee health insurance 19 ������������� Total.676 ........292 –12.000 4 ..  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 ..328 ..813 –7..455 .308 17....388 6.....591 –6..299 –6..680 –6....214 –1..S..162 –1....435 15.552 –6.884 6..722 37.664 5.108 ..842 –38....507 1..256 302 8..506 –5...240 1..166 46 7.962 –4..023 1..712 .........315 17. tax relief for small business ����� Incentives to promote regional growth: Extend and modify the NMTC �������������� Restructure assistance to New York City..658 .258 1. 4..334 –7......846 102 6...914 9. research.423 1..... 6.963 17 240 248 7...763 –4...512 –2.163 1..478 18.413 301 10..119 –2.748 75 6. –234 –401 –421 –442 –464 –488 –512 –538 –565 –593 –1.040 .826 –889 –925 –22....659 –2.

..439 –18.666 –15... .501 –3.....576 –4.. reform U........387 –19...... –1....041 –1....... .......... –8 –12 –12 –11 –11 –11 –11 –11 –10 –10 –54 –107 .... –17 –53 –57 –61 –65 –69 –72 –76 –79 –83 –253 –632 .....419 –4.316 –944 –5..... –60 –220 –333 –304 –221 –141 –64 –11 –2 –7 –1. ...125 –1. ...... ...... –182 –311 –323 –336 –349 –362 –374 –386 –400 –416 –1. ..044 –1.......... ......986 –10...570 –1.. .......181 –5.057 –2....... .. .143 –1..... –1... ....556 –18...219 –2..Table S–8.. –2...436 –14..... .099 –748 –514 –366 –289 –90 –8.....667 –78...641 –1.....760 –5...........978 . reform treatment of financial and insurance industy institutions and products ���������������������������������������������� Eliminate fossil fuel preferences: Eliminate oil and gas preferences: Repeal enhanced oil recovery credit 20 ������ Repeal credit for oil and gas produced from marginal wells 20 ���������������������� Repeal expensing of intangible drilling costs ����������������������������������� Repeal deduction for tertiary injectants ���������������������������������������� Repeal exception to passive loss limitations for working interests in oil and natural gas properties ��������� Repeal percentage depletion for oil and natural gas wells ��������������������� Repeal domestic manufacturing deduction for oil and natural gas production ��������������������������������������� Increase geological and geophysical amortization period for independent producers to seven years ����������������������������������������������� 2014 SUMMARY TABLES Totals 2013 ..210 –4.. –60 –100 –100 –100 –100 –100 –100 –100 –100 –100 –460 –960 .....693 . –7 –10 –9 –8 –8 –7 –7 –6 –6 –6 –42 –74 ........167 –16..269 –16... ...506 –2.437 –7..091 –1...... international tax system ��������������������������������������������� Reform treatment of financial and insurance industry institutions and products: Require that derivative contracts be marked to market with resulting gain or loss treated as ordinary �������� Modify rules that apply to sales of life insurance contracts ���������������������������� Modify proration rules for life insurance company general and separate accounts ������������������������������� Extend pro rata interest expense disallowance for corporate-owned life insurance �������������������������������������������� Total.. –10 –20 –27 –36 –46 –50 –50 –50 –50 –50 –139 –389 ..428 –1..630 –1...148 –705 –510 –532 –555 –15........ ....663 –2.... ......... ... .439 .682 –1. –2...211 –10......039 –1.. ...  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .....915 –17...111 –2. ..S...........................872 –3........ ..............473 –1...824 .067 –1.788 –2...522 –16... –9......148 –2....... .614 –1... ...136 –30..631 ..648 –1.042 –1.. .. ......889 . –20 –52 –126 –275 –471 –642 –806 –973 –1..431 –1.408 –163.138 –1...323 ..130 –15.... .........363 49 Prevent use of leveraged distributions from related foreign corporations to avoid dividend treatment ������������������ Extend section 338(h)(16) to certain asset acquisitions ������������������������������� Remove foreign taxes from a section 902 corporation’s foreign tax pool when earnings are eliminated ����������� Total.460 –2..045 –1.....500 –4..655 –19. –304 –529 –541 –556 –570 –554 –528 –498 –465 –433 –2.052 –1.... –947 –1......121 –1....723 ........426 –1.993 ...413 –2....146 –18.. .......639 –1.

..146 ........734 –8..726 –8..... .. eliminate coal preferences ��������������������������������� Total........671 –10...507 –4.. ...472 –3.....695 –36...948 –10... ...169 –4... –113 –193 –196 –198 –201 –206 –209 –216 –222 –228 –901 –1....994 –4.. eliminate oil and gas preferences ��������������������������������� Eliminate coal preferences: Repeal expensing of exploration and development costs �������������������������� Repeal percentage depletion for hard mineral fossil fuels ������������������������� Repeal capital gains treatment for royalties ������������������������������������������ Repeal domestic manufacturing deduction for the production of coal and other hard mineral fossil fuels ���� Subtotal.....255 –3..397 –9..... –64 –198 –293 –324 –390 –417 –320 –209 –175 –171 –1...... ..042 –6.. ... –3.039 –9..578 –3.. MID-SESSION REVIEW Subtotal..533 –8. .....445 –41. .........590 –8... –146 –252 –259 –267 –275 –283 –292 –300 –309 –319 –1... –85 –112 –112 –112 –112 –112 –112 –112 –112 –112 –533 –1.....930 –5.. –3........724 –10......577 ....856 –2.... eliminate fossil fuel tax preferences ����������������������������� Other revenue changes and loophole closers: Repeal the excise tax credit for distilled spirits with flavor and wine additives 2 ��� Repeal LIFO method of accounting for inventories ������������������������������������������ Repeal lower-of-cost-or-market inventory accounting method ������������ Modify depreciation rules for purchases of general aviation passenger aircraft ������������������������������������������������ Repeal gain limitation for dividends received in reorganization exchanges ��� Expand the definition of built-in loss for purposes of partnership loss transfers ��������������������������������������������� Extend partnership basis limitation rules to nondeductible expenditures ������������� Limit the importation of losses under related party loss limitation rules ���� Deny deduction for punitive damages ��� Eliminate section 404(k) ESOP dividend deduction for large C corporations ���������������������������������������� Total...911 –2......432 –3. ....299 –3....178 –80..412 .344 –1...954 –3...803 –3.769 ... –54 –56 –60 –63 –66 –69 –72 –75 –78 –82 –299 –675 ....835 –10..284 –8.616 –48....529 –11.... –4...... –5 –6 –7 –7 –7 –7 –8 –8 –8 –10 –32 –73 ...... –56 –77 –85 –91 –95 –98 –102 –107 –114 –123 –404 –948 .299 –11...521 .... . .982 .957 –103.....699 –5...490 –7.. –407 –614 –665 –674 –682 –691 –699 –707 –716 –722 –3..346 –10.Table S–8...460 –1.561 ..........755 –7... –206 –323 –338 –350 –361 –371 –378 –388 –399 –407 –1. .315 –3.470 –864 –259 –270 –283 –296 –309 –5......915 –11...172 ..........281 –8.........731 –22....702 .....094 –2.... –25 –43 –45 –47 –49 –48 –47 –44 –44 –40 –209 –432 ......... –14 –31 –37 –42 –45 –48 –50 –53 –55 –57 –169 –432 .891 . –3....093 .  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) 2015 2016 2017 2018 2019 2020 2021 2022 2023 20142018 20142023 .....644 –3....269 –2.....138 –24...... –617 –1... other revenue changes and loophole closers ������������������������������� Reserve for revenue-neutral business tax reform �������������������� 2014 50 Totals 2013 ...263 –10.....867 –37. ..199 –2.376 –5. –53 –25 –71 –35 –79 –36 –84 –36 –88 –38 –92 –39 –95 –39 –99 –41 –105 –41 –113 –42 –375 –170 –879 –372 ...... .....724 –5.

.861 –7.. –65 –87 –89 –91 –93 –93 –95 –97 –99 –101 –425 –910 .273 –2.. . –14 –200 –14 –200 –14 –200 –14 –200 –14 –200 –14 –200 –14 –200 –14 –200 –14 –200 –14 –800 –70 –1.796 –15...123 –25.714 –15.893 51 ..378 .....237 –2.... 1 The estimates for this proposal include effects on receipts....300 –2. 3 Savings in 2022 and 2023 include sustainment of enforcement initiatives beyond the sunset of the discretionary spending caps contained in the Budget Control Act of 2011..589 –10... . ... –696 –727 –759 –794 –826 –851 –878 –903 –929 –957 –3...503 –3.460 –10....000 –8......... For outlay effects..502 ...104 –2.483 –3.000 –13..527 –6. –800 –1....451 –10....569 –6.926 –36.209 –427 .. 215 –2..908 –91.875 –2..000 –10. –48 –82 –70 –113 –71 –113 –74 –113 –76 –113 –76 –113 –78 –113 –80 –113 –80 –113 –81 –114 –339 –534 –734 –1..375 –37...... –1............000 –3..... . 2.309 –29.000 –23........ –24 –35 –36 –37 –38 –39 –40 –41 –42 –43 –170 –375 .000 –20...197 –2... .....031 –46.728 –63. –1.320 ...802 –8.195 14 –164 .529 –5........661 –11.. ........ 2 4 Increased revenues associated with implementing the Buffett Rule prior to estimating the effects of the proposal to reduce the value of certain tax expenditures �������������� .971 –6..038 –11..044 –264 –2.816 –7..974 –5....325 –2... 1 4 9 12 14 484 507 –1..........000 –16.....765 –9...... positive figures indicate lower receipts.. –243 .000 .952 SUMMARY TABLES Note: For receipt effects.... The receipt effects included in the totals above are as follows: Net of income offsets........Table S–8.936 –20......... 4 10 –109 –493 105 266 190 142 –95 115 ..100 . –200 –53 –204 –52 –209 –53 –213 –53 –218 –53 –223 –53 –228 –55 –233 –55 –238 .766 –5...569 –2.052 –5..525 –6....800 –140 .502 –24.....142 –223...153 –2.000 –100..050 –9......315 –41..668 –40. .......000 –18.234 –6..955 –6...008 ...... –458 –1......837 –10.017 –7. For net costs...  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) Totals 2013 Implement unemployment insurance integrity �������������������������������������������������� Implement cap adjustments for UI program integrity ����������������������������������� Implement tax enforcement program integrity cap adjustment ����������������������� Increase Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) contributions ������������������������������������������ Prevent improper use of the Death Master File ��������������������������������������������� Adjust indexing and protect vulnerable populations ��������������������������������������������� Reauthorize special assessment from domestic nuclear utilities ���������������������� Increase coal AML fee to pre–2006 levels � Establish an AML hardrock reclamation fund ��������������������������������������������������������� Increase duck stamp fees ��������������������������� Strengthen unemployment insurance system solvency �������������������������������������� Establish a mandatory surcharge for air traffic services ���������������������������������������� Increase levy authority for payments to Medicare providers with delinquent tax debt ��������������������������������������������������������� Reform inland waterways funding ������������ Disclose prisoner data for improper payments ������������������������������������������������ Total receipt effects of mandatory proposals ��������������������������������������������� 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014– 2018 2014– 2023 ....179 –28...655 2.158 –13. . positive figures indicate higher outlays..267 –20. –7.. .000 –6.. positive figures indicate higher deficits...252 –2.....067 –4.

133 ..799 2. 31 5...... 12 This proposal has outlays of less than $500..547 533 14.. The total cost over 2014–2023 is $1 million..522 2.000 per year......041 24...799 10... .997 ..378 .. 325 340 354 367 379 389 400 409 415 1..000... 33 7.. –7 –7 –7 –7 –8 –8 –8 –9 –9 –9 –36 –79 . The total cost over 2014–2023 is $1 million............512 2....552 2.. the proposal generates $300 million in additional proceeds.. The total cost over 2014–2023 is also less than $500.181 558 18. The total cost over 2014–2023 is also less than $500..029 .. The total cost is $1 million from 2014–2018..069 2.799 2. ..... 19 The estimates for this proposal include effects on outlays.000 per year in years 2014–2018. –21 –24 –25 –26 –27 –28 –29 –30 –31 –96 –241 ..2 billion over 10 years....589 1............ 9 This proposal has outlays of less than $500.. The total cost is $1 million from 2014–2018 and $3 million from 2014–2023..511 550 97 10.977 . 37 9..799 2..737 100.... ..108 506 6.... 18 Overall... The total cost is $1 million from 2014–2018 and $2 million from 2014–2023.. and double the tax credit for small employer plan start-up costs ����������������� Expand child and dependent care tax credit ������������������������������������������������������� Modify reporting of tuition expenses and scholarships on Form 1098-T ���������������� Extend IRS math error authority in certain circumstances ���������������������������� Simplify the rules for claiming the EITC for workers without qualifying children ��� Total... including a small employer tax credit.... 29 3.. The total cost over 2014–2023 is also less than $500.902 2.. The total cost over 2014–2023 is also less than $500....000 per year..799 2.. 7 This proposal has outlays of less than $500..000 per year in 2014–2018.000 per year..071 28. 27 2...372 .893 .. 14 This proposal has outlays of less than $500.. The outlay effects included in the totals above are as follows: 52 5 6 Totals 2013 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014– 2018 2014– 2023 ... 131 206 212 213 217 223 226 230 235 762 1.022 . 39 11...224 2............ The total savings are $1 million over 2014–2018 and $4 million over 2014–2023. 15 This proposal has outlays of less than $500..592 .160 4. 13 This proposal has outlays of less than $500...117 . 8 This proposal has outlays of less than $500........ 230 417 12 1.000 per year.Table S–8.000 per year.799 2.943 550 273 53.... This proposal has outlays of less than $500... 17 This proposal has outlays of less than $500..805 528 9.. 29 4...799 2......  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) This proposal would also result in discretionary savings of $7......442 11.... .. 16 This proposal has no estimated costs.000 per year.000.036 ...000...137 518 7. The total cost is $2 million from 2014–2018.202 . .......476 .... 10 This proposal has outlays of less than $500...... 25 837 494 4.386 3...845 521 12.. 47 213 460 723 999 1... 409 1. 36 8.000 per year. outlay effects of receipt proposals ��� 2014 .. Total savings are net of Federal agency relocation costs..136 MID-SESSION REVIEW Provide small businesses a temporary 10-percent tax credit for new jobs and wage increases ���������������������������������������� Designate Promise Zones ��������������������������� Provide America Fast Forward Bonds ������ Allow eligible uses of America Fast Forward Bonds to include financing all qualified private activity bond categories ������������������������������������������������ Increase the Federal subsidy rate for America Fast Forward Bonds for school construction �������������������������������������������� Provide for automatic enrollment in IRAs.......273 510 10.. .. 11 This proposal has outlays of less than $500...334 544 16....000....656 .288 1..000 per year.000 per year.

if Congress decided those costs should be offset.825 1....388 1.792 8.. 20 53 ..595 1.  MANDATORY AND RECEIPT PROPOSALS—Continued (Deficit increases (+) or decreases (–) in millions of dollars) Addendum. 21 These additional revenue savings could be used to pay for continuing tax benefits provided under the American Taxpayer Relief Act.159 1. business tax policies reserved for revenue-neutral reform: Modify and permanently extend renewable electricity production tax credit ��������������������������������������������������� Expand and simplify the tax credit provided to qualified small employers for non-elective contributions to employee health insurance ���������������� 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014– 2018 2014– 2023 .Table S–8. 21 88 332 580 771 957 1..716 10 51 51 50 43 23 13 9 6 6 5 218 257 SUMMARY TABLES Totals 2013 The provision is estimated to have zero receipt effect under the Administration’s current economic projections...

..... 1 ............ ...144 1........ 351 6 14 ...161 1...........210 1...115 5.........219 1. .............. ...... 38 .....105 1....... ........ .... ............ Total.... ...............107 1......... excluded from all totals above:7 2013 Joint Committee enforcement ������������ Effects of reversing 2013 Joint Committee enforcement �������������������������������������������� n/a n/a 2.... ..263 1.196 1....062 1................ .092 1...... 2 ..................... 2 ................ 38 .192 1......234 1... 236 6 5 ... ...... Proposed Changes to Base Caps ����� –2 –1 –1 –1 –1 –2 –2 –10 –18 –26 –34 –42 –55 –68 –34 –260 Total......... 2 . ...084 1.......231 5...208 1..835 Proposed Changes to Base Discretionary Caps:2 Reclassify Transportation Rail Programs ��� Proposed cap reductions: Defense cap reductions ������������������������������ Non-Defense cap reductions ���������������������� Non-Defense reductions of base program integrity funding for shift to mandatory ��� Grand Total. Base Discretionary Funding ������������ 1........053 1.........504 11..609 5.464 Discretionary Cap Adjustments and other funding excluded from base totals: 3 Overseas Contingency Operations 4.....174 1. . .5 ������������� Disaster Relief �������������������������������������������� Program Integrity �������������������������������������� Other Emergency/Supplemental Funding 6 �� 163 .146 1............ ...297 –2 –1 –1 –1 –1 –1 –1 –2 –2 –2 –2 –2 –2 –2 –7 –16 ........ .......... . .. . –4 –4 –8 –8 –12 –12 –16 –16 –20 –20 –26 –27 –33 –33 –12 –12 –119 –120 .650 54 Actuals ........ ............  FUNDING LEVELS FOR APPROPRIATED (“DISCRETIONARY”) PROGRAMS BY CATEGORY (Budget authority in billions of dollars) 2010 2011 Enacted Request 2012 2013 2014 Outyears 2015 2016 2017 2018 2019 Totals 2020 2021 2022 20142018 2023 20142023 Discretionary Current Law Caps by Category:1 Security Category ��������������������������������������� Nonsecurity Category �������������������������������� Defense Category ��������������������������������������� Non-Defense Category ������������������������������� 684 407 n/a n/a 688 374 n/a n/a 684 377 n/a n/a 684 369 n/a n/a n/a n/a 552 506 n/a n/a 566 520 n/a n/a 577 530 n/a n/a 590 541 n/a n/a 603 553 n/a n/a 616 566 n/a n/a 630 578 n/a n/a 644 590 n/a n/a 660 605 n/a n/a 677 620 Total..056 1..086 1......... ..........060 1......... 38 ........ ........... . ... 1...................888 2. ................. * 10 159 .........138 1.058 1.. –1 –1 –1 –1 –1 –1 –1 –1 –1 –2 –5 Total...... ... .......... 2 ....182 1....156 1... 1 . 2 .. ......123 1.. 38 .059 1..... ... ........ ......196 1....232 1... ......... 2 .......... .265 1.538 11.. 38 ...... ..............212 1... ... 1 ... 38 ..... ..........052 1..... ..156 1. ..090 1........ .Table S–9. . –64 ...... +64 ..... Discretionary Budget Authority ������������������������������������������������������ n/a n/a 6....061 1. 38 ....214 1.. ... ......121 1. ........ ...................... ..724 MID-SESSION REVIEW Discretionary Joint Committee Enforcement...131 1.. ..229 5.......752 11... * –1 127 10 * * 99 12 * 41 83 6 * .203 1....... ..................... .. Cap Adjustments and other �������������� 173 159 137 152 89 39 39 40 40 40 40 40 2 2 248 371 .178 1.. Base Discretionary with changes ��� 1...... .

for the reclassification of certain Transportation programs and further reductions as part of the Administration’s policy to achieve additional deficit reduction. 6 Amounts in 2010-2012 are not designated as Emergency funding pursuant to Section 251(b)(2)(A) of the BBEDCA.3 billion per year for Government-wide OCO funding from 2015 to 2021. 111-5). 7 The amount reflects the net effect of discretionary sequestration for 2013 that took place on March 1. including adjustments for savings achieved pursuant to section 253(f) of the BBEDCA and other adjustments for technical corrections and account restructuring.Table S–9. SUMMARY TABLES (Budget authority in billions of dollars) 55 . 1 The Budget Control Act of 2011 (BCA) amended the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) by establishing statutory discretionary caps for 2012 through 2021 with separate categories in 2012 and 2013 for “Security” and “Nonsecurity”. and other supplemental funding. These amounts reflect the Administration’s proposal to cap total OCO budget authority from 2013 to 2021 at $450 billion but do not reflect any specific decisions or assumptions about OCO funding in any particular year. 2012 to equal all accounts in budget function 050 for the “Defense” category with all other amounts in the “Non-Defense” category for the years 2013 through 2021. These categories were revised on January 15.L. as they include congressionally-designated emergencies. Amounts in 2010 and 2011 are not so designated but are shown for comparability purposes. as amended. 2 The 2014 Budget proposes changes to the current law caps in the BBEDCA. 2013. 4 The Department of Defense’s 2014 OCO funding level has been updated to reflect the amounts requested in the budget amendment that was transmitted to the Congress on May 17. The American Taxpayer Relief Act of 2012 reinstated the Security and Nonsecurity caps for 2013. amounts in 2012 through 2023 are existing or proposed cap adjustments designated pursuant to Section 251(b)(2) of the BBEDCA. The Administration proposes to reverse the 2013 reductions and fully replace the Joint Committee enforcement procedures with balanced deficit reduction.  FUNDING LEVELS FOR APPROPRIATED (“DISCRETIONARY”) PROGRAMS BY CATEGORY—Continued * Less than $500 million. 5 The Budget includes placeholder amounts of $38. 3 Where applicable. as amended. rescissions of funding provided in the American Recovery and Reinvestment Act of 2009 (P. 2013 as a result of the Presidential Order that was issued in compliance with section 251A of the BBEDCA. as amended.

1 1.8 145..120..9 10.9 12.1 11..4 34....5 ..5 41.9 24..8 124..9 9.3 56.3 .0 33..137..5 24..2 7.0 9.4 ...2 426.5 32.4 1.1 1.5 78....4 .2 5..7 78.104.5 0.5 Discretionary Cap Adjustments and Other Funding (not included above): 6 Overseas Contingency Operations ��� Defense 7 �������������������������������������������� Homeland Security �������������������������� 162..9 9..3 11.7 0.6 16...9 1.2 0.1 13.4 330.2 14..0 8.0 12.4 1.3 15. .7 45.1 11.2 13.9 39.4 72.8 1.7 1.8 28.2 0. 38.2 46...9 7.9 –14.0 8.3 0.1 20..7 8.3 23.2 33.6 32.2 1..5 17...3 ..2 20..7 12... .2 85.0 41.7 23.4 17.3 50..747...1 18.. 38.3 11..9 8.9 –258.4 39. 1.4 13...090.0 18. .7 –37.2 0...6 39.3 0.1 27.3 7.9 9.5 1...1 159..4 8.3 57...7 1.8 –23.0 8..3 79.7 39..3 540.5 13. .9 10..5 551.7 87.4 1.9 13.3 1....7 7.083.5 23.9 18.3 23.4 158..8 185.6 5.3 .8 135...3 27.9 1.1 19.3 42..6 13.....5 1..5 26..7 5..5 26..8 38.3 202.8 17.2 8.8 32...8 92.5 21...3 26.2 21.8 24.. ..2 0..5 15.3 ..0 33..3 58.4 12.8 ..2 21.3 902..0 1.4 41.0 35.0 5...0 75..3 17.0 0.3 12.4 81.8 20.5 10..9 72.7 –1.2 49..8 87..8 9..1 100..7 560.9 4..2 1.0 11..6 10..3 25.3 126.6 1.0 21..7 0.1 58..4 2.3 .5 365.5 9.4 362..8 71.9 11.2 12.209.3 11.5 40.2 72...6 –0.1 64..3 –18.0 119. 38.0 18. 1..1 18.5 11.4 ..3 49.3 54.7 0.4 1..5 18..0 78.1 5.155. .4 7.2 28.4 73.5 13.2 19.3 51.8 12..3 30.9 12..2 –27..3 0..2 18.4 196..8 .056..1 0.1 28.2 9.8 7.8 1.0 18..5 –15..8 8.9 8.4 8.9 530..0 3.2 22...2 9.0 1.8 12..7 16.4 31.6 18.0 73..1 64.3 98...4 56.7 14.9 15.7 117.7 8.4 87.4 23.9 30..1 11.. . 1.3 21.5 586.4 48..4 56.7 16.9 84...2 –46.0 10.5 5.8 0..4 67..2 47. .9 28..8 1.5 5.2 35..3 10..9 527...8 8...8 1.7 306.9 –71..9 1.3 39..0 33...0 60...8 1..3 70...0 1..4 81.9 25.1 19.. 38.8 12.2 9.3 22.0 83....0 17. 38...0 615..0 10.5 34.. .0 13.0 526.0 20.1 11.5 4..7 8..3 43.9 80.1 30.9 1..191. 351..3 52..3 48.0 10.4 4. Base Discretionary Funding  1.9 83.0 12.5 7.0 97.2 31..3 79.6 99.4 .7 528..0 8.7 6.9 1.8 41.0 39.0 298.8 25.3 26.2 93.9 11.5 577.4 1.2 0.3 0.5 8.9 20..2 Agriculture ������������������������������������������� Commerce ��������������������������������������������� Census Bureau ��������������������������������� Defense 3 ������������������������������������������������ Education ���������������������������������������������� Energy �������������������������������������������������� National Nuclear Security Administration 3 ���������������������������� Health & Human Services (HHS) 4 ������ Homeland Security ������������������������������ Housing and Urban Development ������� Interior �������������������������������������������������� Justice ��������������������������������������������������� Labor ����������������������������������������������������� State and Other International Programs ������������������������������������������ Transportation ������������������������������������� Treasury ����������������������������������������������� Veterans Affairs ����������������������������������� Corps of Engineers ������������������������������� Environmental Protection Agency ������ General Services Administration �������� National Aeronautics & Space Administration ��������������������������������� National Science Foundation ��������������� Small Business Administration ���������� Social Security Administration (SSA)4  Corporation for National & Community Service �������������������������� Other Agencies ������������������������������������� Allowances 5 ������������������������������������������� 2011 Enacted Request 56 Actuals .  FUNDING LEVELS FOR APPROPRIATED (“DISCRETIONARY”) PROGRAMS BY AGENCY (Budget authority in billions of dollars) 2010 2012 2013 2014 Outyears 2015 2016 2017 2018 2019 Totals 2020 2021 2022 2023 20142018 27....8 9.6 12.2 159.1 8.5 11..4 13.3 .8 18.3 251.504.9 29.8 210...0 19.6 19.6 12..4 29..0 0.5 568.2 20142023 248.173.4 6. 1.4 12..5 115.6 8..2 530.3 39.8 63.8 8.5 13....2 8. MID-SESSION REVIEW Base Discretionary Funding by Agency: 1.Table S–10.9 1.8 18..4 79.4 47.5 596.6 66..2 0..1 24.9 36.0 0.7 –40.6 1.4 17.6 5.9 0.3 532.8 .5 5.6 77.0 20.4 23..6 162.4 1.228.8 0.728.9 37.6 9.5 2..2 0.7 7.7 89..8 9..1 –34.8 7.3 ..058...9 0.8 16. 38.4 95...7 5...3 44.2 27..0 53.1 25.8 0.7 5.3 12.1 9.4 26. 38.8 36. 1.7 33.4 19.1 605..4 0....6 0.1 19.5 78.3 53.9 19.7 77..4 5...8 12.9 91. .6 17.....4 13. .8 12.1 5.6 71.2 40..7 69...9 1.6 11.6 14.0 27.1 61.1 76.2 13...9 5.7 18.9 8...0 16.6 29.5 20..8 42..1 61.1 8..0 10.060.. .3 68...9 13.8 37.5 68.1 5....8 97.9 424.6 75.1 16...463. 236..5 10...9 0.6 700.0 18.3 78.7 9.3 11.5 14.5 –0.. .5 8..7 26.7 37.5 8..3 172.9 758.9 11...051.9 0.4 53.4 1..3 12.3 42.5 0.9 109.2 11.2 67.1 Subtotal...0 131...3 84.9 2...9 9.

...... .. ....... ... .8 * ......... ......... ......... ... ................ 0............. ........ .......5 0...177.....1 57 0.............. ............230...... ...... . 1..... ..... 5.... 1........2 .. ......... . ......... ...........6 ........... . . ..8 .. .......... .......... .. ......... ... .....219... ........... ... . . ............... 1.196.... ............ . . ... 0...... ...6 11....... ............... .. ... .... .....................5 –1..........3 .............. . . ......... ................ .... ..........5 . ......... 268.... ...5 .......... ......7 16.......................... .. ... ...2 5... ........ ............................ .. .... .. .... ....... .......... ........9 1......211................7 * ...............6 5..... ............... ....... ..2 1. ............. .... .. .. . . .5 0... .......3 . . ..1 1.....3 .0 –0........... .......7 ..........2 3..... 1. ...... ..... ...145... ..... ...........8 ......................2 * 1...... ...4 1.......... .....6 –0...... ... ..................8 3..........6 * 38.. .....4 1....... .................4 0..9 0....3 6.. . 0...............3 ...... ............7 0.........3 .......... ..8 5..... ........... .3 * –0........................... ......................... . ..... ..........8 0......... ..... ..... .......... . ...........8 .. 0..........8 5.3 ..7 * 38... 40.. * ... . .. ...............1 * –1....... ..... 0... .... ......2 11....2 Discretionary Joint Committee Enforcement.. ...... .. .... ....... ................................. ...........3 ............ . excluded from all totals above: 10 2013 Joint Committee enforcement ���� Effects of reversing 2013 Joint Committee enforcement ������������������� 1... ..... ... ....... ............ 1.1 ..... .. ......6 .........0 * 38....... ..... .. . ...... ................... 0...... ... ................ –63..................... ......3 * 38.....7 1.............................................. ... ..... Grand Total......... .......8 1....7 * 38......... ......... .........195..... 3.. ..................... ..........5 ....123........ ....... . ...........3 .... ........................... .............231................. .....6 .................5 ...4 * 38........ ..... ... ..... .............. .. ...... .... 14............... ... . ...... ........ ... ..8 1.. ........ ........ ..... ......... 0...1 * 0. 0........ ......... ........... .......................... .... . ... ..........5 0... ...................... ... ... . ... ...... ...... ..... ... .. ... ...... ..... . .. . ..... ......7 1..... and SSA ����������������������� Other Emergency/Supplemental Funding 9 ����������������������������������������� Agriculture ��������������������������������������� Commerce ����������������������������������������� Defense ��������������������������������������������� Energy ���������������������������������������������� Health and Human Services ����������� Homeland Security �������������������������� Housing and Urban Development ��� Interior ���������������������������������������������� State and Other International Programs �������������������������������������� Transportation ��������������������������������� Corps of Engineers ��������������������������� Environmental Protection Agency �� Small Business Administration ������ Other Agencies ��������������������������������� 2011 Enacted Request 2012 2013 2014 Outyears 2015 2016 2017 2018 2019 Totals 2020 2021 2022 2023 20142018 20142023 0. ..................... .. –1. .......3 5.......... ............0 0.............. ....... ... ..1 5.. .............................. ................... ........203..... ...6 1......... Labor. ...... ..... .. 9.......2 .... Discretionary Funding  1........6 0..... ......... .. .........5 ................262...... 0......................... .... . ..... .. 1................. .. . .... 0. ....8 1...... ...................2 5................ * ...213...........9 –1.... ................ ................... ...... ............. ......................... ... .... .... .... ....................1 SUMMARY TABLES (Budget authority in billions of dollars) .......... ...... .............8 0.....8 5...............1 13............8 11.160. .................... 0.... . ..... ...........7 1............ ....... . ...... ....5 ... ........ ... ...........7 0........ 6...... ......3 11....... ... ............... ... ..5 ............. 10... .........835............... .... ....... .. .. ........ ..3 1. ............... ..........7 * 38......... ... .. ... .9 1... ........... 1.. . .... ........... ..... ... .8 ............. 5...8 1............ ... . .....8 1................ .. ..8 . 0.. ... ..2 1....... ......... 13.................... ..9 1...................6 1..... ................0 1................2 0... .. ... .......... 1.........5 ..... .................... ....5 ........... ................................ ............... ... .. .. ..... ..... 63. . .................. ..... ... ....... .... ....... 11..6 0..7 1.144. ...... ...... .... ..... 0.5 6..751... ..... .........5 ........3 .. ..............1 1.. . ................ . ............8 * 153......1 ........... ..2 .. ..... ..... .. .  FUNDING LEVELS FOR APPROPRIATED (“DISCRETIONARY”) PROGRAMS BY AGENCY—Continued Actuals 2010 Justice ����������������������������������������������� State and Other International Programs �������������������������������������� Overseas Contingency Operations Outyears 8 �������������������������������������� Disaster Relief ����������������������������������� Homeland Security �������������������������� Transportation ��������������������������������� Corps of Engineers ��������������������������� Small Business Administration ������ Other Agencies ��������������������������������� Program Integrity ���������������������������� Treasury ������������������������������������������� HHS....2 ....4 ................ 0......... ............. . ....7 1.Table S–10.. .... .......... .... .......... . ....... .... .......... .............

  FUNDING LEVELS FOR APPROPRIATED (“DISCRETIONARY”) PROGRAMS BY AGENCY—Continued Actuals 2010 2011 58 (Budget authority in billions of dollars) Enacted Request 2012 2013 Memorandum: 2014 Base Defense Category Request by agency: Defense ������������������������������������������������������������������������������������������������������� Energy (including NNSA) ������������������������������������������������������������������������� Justice (FBI) ���������������������������������������������������������������������������������������������� Homeland Security ������������������������������������������������������������������������������������ Other ���������������������������������������������������������������������������������������������������������� Total. similar to the Function 920 allowances used in Budget Resolutions. to represent amounts to be allocated among the respective agencies to reach the proposed defense and non-defense caps for 2015 and beyond. These levels are determined for illustrative purposes but do not reflect specific policy decisions. 1 Amounts in 2010 through 2013 exclude changes in mandatory programs enacted in appropriations bills since those amounts have been rebased as mandatory. 3 The Department of Defense (DOD) levels in 2015–2023 include funding that will be allocated. These categories were revised on January 15. 2012 to equal all accounts in budget function 050 for the “Defense” category with all other amounts in the “Non-Defense” category. 4 Funding from the Hospital Insurance and Supplementary Medical Insurance trust funds for administrative expenses incurred by the Social Security Administration that support the Medicare program are included in the Health and Human Services total and not in the Social Security Administration total.Table S–10. including adjustments for savings achieved pursuant to section 253(f) of the BBEDCA and other adjustments for technical corrections and account restructuring. amounts in 2012 through 2023 are existing or proposed cap adjustments designated pursuant to Section 251(b)(2) of the BBEDCA. in millions of dollars: 2015: $1.3 billion per year for Government-wide OCO funding from 2015 to 2021. Current estimates by which DOD’s budget authority will decrease and NNSA’s will increase are. 2013. 6 Where applicable.9 1.665.8 4.816. The American Taxpayer Relief Act of 2012 reinstated the Security and Nonsecurity caps for 2013. 7 The Department of Defense’s 2014 OCO funding level has been updated to reflect the amounts requested in the budget amendment that was transmitted to the Congress on May 17.196. Base Defense Category ���������������������������������������������������������������� 2014 Outyears 2015 2016 2017 2018 2019 Totals 2020 2021 2022 2023 20142018 20142023 526. to the National Nuclear Security Administration (NNSA). 2014–2023: $14. 9 Amounts in 2010-2012 are not designated as Emergency funding pursuant to Section 251(b)(2)(A) of the BBEDCA. 2013 as a result of the Presidential Order that was issued in compliance with section 251A of the BBEDCA. 8 The Budget includes placeholder amounts of $38. as amended. 111-5).444.602. rescissions of funding provided in the American Recovery and Reinvestment Act of 2009 (P. The Administration proposes to reverse the 2013 reductions and fully replace the Joint Committee enforcement procedures with balanced deficit reduction.6 1. as they include congressionally-designated emergencies. in annual increments.0 MID-SESSION REVIEW * $50 million or less. as amended. . 2019: $1.0 552. DOD and NNSA are reviewing NNSA’s outyear requirements and these will be included in future reports to the Congress.L. 2016: $1.702. These amounts reflect the Administration’s proposal to cap total OCO budget authority from 2013 to 2021 at $450 billion but do not reflect any specific decisions or assumptions about OCO funding in any particular year. whereas amounts in 2014 are net of these proposals. 2 The Budget Control Act of 2011 (BCA) amended the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) by establishing statutory discretionary caps for 2012 through 2021 with separate categories in 2012 and 2013 for Security and Nonsecurity. Amounts in 2010 and 2011 are not so designated but are shown for comparability purposes.6 17. 2017: $1. 5 The 2014 Budget includes allowances. 10 The amount reflects the net effect of discretionary sequestration for 2013 that took place on March 1. and other supplemental funding. 2018: $1.

.. ..203 24..1% 141 374 516 2.... requirement to borrow from the public (equals change in debt held by the public) �������������������������������������������������������� 66 172 123 162 158 146 138 132 128 124 119 118 1.. .024 3 16... and coverage 3 ���������� Total..Table S–11............. –* ....192 11 24.. –1 .024 8 19.. –1 ............391 24.539 11 22... –1 . ..5% –29 613 584 2......875 21..743 11 25.754 SUMMARY TABLES Actual 2012 59 ..6% –104 670 566 2.......061 19..... –1 .5% 276 302 578 3.......1% 27 25 –20 .050 5 17..4% –229 778 549 2. 66 . –1 ... .550 23....... debt subject to statutory limitation 4 ������������������� 16....381 11 23.729 22.... End of Year: Debt issued by Treasury ���������������������������������������������������� Adjustment for discount.....866 10 20........4% –133 726 593 2... ....153 134 –6 1....003 25..... –1 .. changes in financial assets and liabilities ������������������������������������������������������������� Seigniorage on coins ������������������������������������������������������� Total..972 9 19..054 7 18.153 932 874 787 736 661 634 677 712 690 712 666 Changes in Debt Subject to Statutory Limitation: Change in debt held by the public ������������������������������������� Change in debt held by Government accounts ����������������� Change in other factors ����������������������������������������������������� Total... premium.028 874 132 * 1. .  FEDERAL GOVERNMENT FINANCING AND DEBT (Dollar amounts in billions) Financing: Unified budget deficit: Primary deficit (+)/surplus (–) ��������������������������������������� Net interest �������������������������������������������������������������������� Unified budget deficit ������������������������������������������������� As a percent of GDP ����������������������������������������������� Other transactions affecting borrowing from the public: Changes in financial assets and liabilities: 1 Change in Treasury operating cash balance ������������ Net disbursements of credit financing accounts: Estimate 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 867 220 1.6% 34 462 496 2.027 17.006 787 183 * 971 736 213 1 950 661 232 * 894 634 220 –* 854 677 144 –* 821 712 131 –1 842 690 123 –1 812 712 89 –1 799 666 85 * 751 Debt Subject to Statutory Limitation... –1 ..... change in debt subject to statutory limitation ��� 1.....087 7..0% 544 215 759 4....4% * 545 545 2..055 18... other transactions affecting borrowing from the public ��������������������������������������������������� Total.719 10 21.. ....992 11 25.. –1 ........... –1 ..7% 528 223 750 4.981 20.... 87 12 136 15 133 17 155 12 147 12 136 11 126 13 120 13 120 9 120 5 119 * 120 –2 –61 –3 –6 –4 –1 –* –* –* –* –* –* –* 1 –1 * .280 932 95 1 1... 173 –* 123 –* 162 –* 158 –* 146 –* 138 –* 132 –* 128 –* 124 –* 119 –* 118 –* Direct loan accounts ����������������������������������������������� Guaranteed loan accounts ������������������������������������� Troubled Asset Relief Program (TARP) equity purchase accounts ���������������������������������������������� Net purchases of non-Federal securities by the National Railroad Retirement Investment Trust (NRRIT) ������������������������������������������������������������������ Net change in other financial assets and liabilities 2 ��� Subtotal.............032 19... ..5% 373 253 626 3........

295 11.989 16.984 76. and other liability accounts.237 96 * 109 14 –27 2.551 67.4% 6.998 97 * 109 15 –27 2.117 97 * 109 14 –27 2. the reduction in cash balances reduces the amount that would otherwise be borrowed from the public. 60 Actual 2012 .243 17. the debt limit was set at $16.050 28 17.696 19. uninvested deposit fund balances.9% 1.228 34 1 109 21 –27 1. 5 Treasury securities held by the public and zero-coupon bonds held by Government accounts are almost all measured at sales price plus amortized discount or less amortized premium. (P.281 72.645.520 16.6% MID-SESSION REVIEW * $500 million or less.074 22 5 109 22 –27 1.332 18.0% 6.192 35 24.Table S–11.087 77.213 13.696 76.866 31 20.024 27 16.874 14. financial assets net of liabilities ��������������������� Debt held by the public net of financial assets ����� As a percent of GDP ������������������������������������������� Estimate 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 16.402 16.271 77. and profit on sale of gold.L.003 20.417 70. accrued interest payable on Treasury debt.077 18.393 14.294 76.180 13. 2013.626 15. End of Year: Gross Federal debt: 5 Debt issued by Treasury ������������������������������������������������ Debt issued by other agencies ��������������������������������������� Total.376 46 1 109 20 –27 1.3% 5.5% 6.995 69. the Federal Reserve Banks held $1.  FEDERAL GOVERNMENT FINANCING AND DEBT—Continued (Dollar amounts in billions) Debt Outstanding.172 11. 2013. 6 At the end of 2012.984 18.539 33 22.719 31 21.874 78.0% 1.2% 2. Agency debt securities are almost all measured at face value.8 billion. and the unrealized discount on Government account series securities. gross Federal debt �������������������������������������������� Held by: Debt held by Government accounts ������������������������������ Debt held by the public 6 ������������������������������������������������� As a percent of GDP ��������������������������������������������������� Debt Held by the Public Net of Financial Assets: Debt held by the public ������������������������������������������������������ Less financial assets net of liabilities: Treasury operating cash balance ���������������������������������� Credit financing account balances: Direct loan accounts ��������������������������������������������������� Guaranteed loan accounts ����������������������������������������� TARP equity purchase accounts �������������������������������� Government-sponsored enterprise preferred stock ������ Non-Federal securities held by NRRIT ������������������������� Other assets net of liabilities ���������������������������������������� Total. and.610 15.905 76. 4 Legislation enacted February 4.271 15. allocations of special drawing rights.041 68. 2 Includes checks outstanding. other asset accounts.1% 1.4% 1.878 92 * 109 16 –27 2.582 76.758 83 * 109 17 –27 2.582 17. 3 Consists mainly of debt issued by the Federal Financing Bank (which is not subject to limit).4% 11.770 11.381 34 23.051 17.6% 4.007 67.1% 940 5 10 109 23 –27 1. debt held by the Federal Financing Bank. 1 A decrease in the Treasury operating cash balance (which is an asset) is a means of financing a deficit and therefore has a negative sign.083 19.030 14.283 15.6% 5.135 66.511 57 * 109 19 –27 1.087 13.5% 2.2% 5.4% 1.510 68.5% 1. Treasury securities in the Government account series are otherwise measured at face value less unrealized discount (if any).635.638 70 * 109 18 –27 1.282 66. Debt held by the Federal Reserve Banks is not estimated for future years.7% 1.750 22. the unamortized discount (less premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds).415 24.0% 1.362 75.120 17. as an offset.027 25. 113-3) temporarily suspended the debt limit through May 18.865 12.362 85 110 90 90 90 90 90 90 90 90 90 90 805 –10 14 109 23 –27 999 10.294 66.417 19.9% 4.905 16.898 14.610 78.791 70. that is.3 billion of Federal securities and the rest of the public held $9.024 30 19.699 billion as of May 19.054 29 18.743 35 25.779 4.457 12.845 15.054 19.1% 5.896 21.213 75.972 30 20.7% 5. cash and monetary assets (other than the Treasury operating cash balance). An increase in checks outstanding (which is a liability) is also a means of financing a deficit and therefore also has a negative sign.760 13. In accordance with that legislation.615 12.842 65.571 23.996 13.2% 6.701 66.159 15.992 36 25. 2013.227 24.294 17.281 12.

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C.EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. . D.

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