CRFB Comments on Administration Budget

The Committee for a Responsible Federal Budget today applauded President Obama for proposing a specific fiscal goal in his Fiscal 2011 budget plan, but said the $3.8 trillion plan does not go far enough.

The Administration must take the lead on preparing the country for the types of tough choices that will be needed, CFRB said, in a press release. Promises of tax cuts for the bulk of the population or new spending programs before a debt reduction plan is adopted, other than for well-targeted stimulus, are counter-productive.

“Clearly the Administration understands the importance of reducing the deficit, and is elevating the issue through this budget. A small spending freeze, some minor tax reforms to raise revenues, and a budget commission are all excellent ideas,” said CRFB President Maya MacGuineas. “But this budget doesn’t go nearly far enough, and it will require presidential leadership to develop a responsible fiscal plan. This has to be the start—not the extent of—the President’s push to implement a strategy to dig us out of this fiscal hole. “

The administration said it wants to reach a balanced budget excluding interest payments on the debt by 2015.