Reconciliation and the Deficit in FY2006 and Through FY2010: Fact Sheet

Publication Date: June 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

The budget resolution for FY2006 (H.Con.Res. 95), adopted by Congress on April 28, 2005, included reconciliation instructions for three bills.1 The first reconciliation bill would cut mandatory spending by $1.5 billion in FY2006 and by $34.7 billion over FY2006 -- FY2010. The second would reduce revenues by $11.0 billion in FY2006 and by $70.0 billion over the five-year period. Another $35.7 billion in revenue reductions over five years was assumed in the budget resolution, but was not part of the reconciliation instructions. The third would raise the statutory public debt limit by $781 billion to $8,965 billion to accommodate the government's ongoing borrowing needs to finance its deficits. Only the first two instructions would have any direct effect on the deficit over those five years (the debt limit has no direct effect on the deficit).