Bleak deficit picture in Treasury report concerns lawmakers (HolyShit!)

[Whoa_Nelly]

http://www.govexec.com/dailyfed/0306/030206cdam2.htm

A little-noticed Treasury Department report sent to congressional leaders in December paints a bleaker picture of the nation's finances than is widely accepted and is beginning to attract attention as lawmakers prepare for election-year budget battles.

According to the 158-page report, the fiscal 2005 federal deficit on an accrual basis was $760 billion, using generally accepted accounting principles that private businesses must use to present their finances.


That is an increase of $144 billion, or 23 percent, over the previous year's deficit of $616 billion. The cost to operate the federal government, including accrued benefits, was $2.95 trillion, versus $2.19 trillion in total revenues, resulting in the $760 billion net operating cost.


These figures are in stark contrast to the $319 billion deficit reported by Treasury for fiscal 2005, which uses the government's accepted barometer of cash outlays versus revenues. That number represents a $93 billion decrease from the previous year's deficit of $412 billion, which Republicans trumpeted as a vindication of their fiscal policies.


Much more at link...