Are Growing Federal Budget Deficits and Debt Cause for
Concern?
By William G. Gale - February 13, 2019
Brookings Institution -
Link to Original Memo
Complete the following passage to describe the difference between "current law" and "current policy"
assumptions discussed in the memo.
"Current policy" deficit projections assume that expiring major tax-cut provisions will
not be extended
and that discretionary spending will rise to maintain constai
Thus, under
"current policy" assumptions, deficit projections arguably reflect
a realistic assessment
in contrast to
"current law" projections, which reflect fiscal plans stipulated
In general, deficit forecasts based on
"current policy" assumptions yield higher
deficit forecasts than those based on "current
law" assumptions.
