Fiscal 1981 Budget Recommendations
The president sent his budget recommendations for fiscal year (FY) 1981 to Congress on January 29, 1980. Outlays are expected to equal $615.8 billion in FY 1981, up from $563.6 billion in the current fiscal year. The budget includes some spending initiatives, most notably for defense and energy. Receipts are expected to total $523.8 in FY 1980 and $600.0 billion in FY 1981. Scheduled increases in social security taxes and the proposed windfall profits tax would contribute significantly to this hefty increase in receipts. The deficit is expected to narrow to $15.8 billion in FY 1981, after expanding in the current fiscal year to $39.8 billion. These figures are naturally sensitive to uncertainties in the economic and political outlooks; however, the estimates are useful in forming a base from which to analyze budget alternatives.
The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.