In addition, projections based on current-law assumptions may overstate likely future revenues. All projections are surrounded by uncertainty. Budget Policy in a Time of Surplus

Today Congress and the President face a very different set of budget choices than did your recent predecessors. After years of restraint, there are pent-up demands—for tax cuts and/or for spending. Simply put, we are not saving enough as a nation. Moving From Balancing the Budget to Balancing Fiscal Risk

While these new surplus projections offer an opportunity to address today’s needs and the many pent-up demands held in abeyance during years of fighting deficits, they do not eliminate our obligation to prepare for the future. This suggests that whatever the fiscal choices made in allocating the surplus among debt reduction, tax cuts, and spending increases, approaches should be explored to mitigate risk to the long term. You face the need not only to make choices about tax and spending policy, but also to design a process for the future. Not only should policy choices be examined individually, but also their aggregate impact on the nation’s long-term economic health should be considered.
What GAO Found

In this statement, the Comptroller General discusses the fiscal policy challenges facing Congress and the nation. The focus of tax administration and budgeting are shifting because of current and projected budget surpluses. The Comptroller General speaks of the need for fiscal responsibility when using surplus projections to design tax and spending policies. These projections are based on a set of assumptions that may or may not hold. They are not a precise prediction of a future and should be used as a reference point when making policy decisions. Although the projected surpluses can provide an opportunity to respond to pent-up demands for additional spending or tax cuts, Congress must balance those demands with the nation's long-term economic health.