Federal Budget Should Include Long-Term Obligations from Entitlement Programs

Publication Date: October 2005

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Alison Acosta Fraser

Research Area: Banking and finance

Keywords: Budget; obligations; entitlement

Type: Brief

Abstract:

The financial reporting principles used by the private sector and state and by local governments should be applied to the federal budget to give policymakers a clearer picture of the nation's financial health. Congress should change the federal budget process to reflect changes in long-term liabilities and obligations as the first step in addressing $36 trillion in unfunded entitlement obligations.