Lawmakers introduced a bipartisan proposal to cap annual deficits at 3% of GDP, but this resolution would still permit spending beyond annual revenue.
House Resolution 981 would limit annual deficits to 3% of gross domestic product, or GDP, a measure of the nation's total economic activity, by 2030 or sooner. Last year's budget deficit was about double that at 6%.
The measure sets a fiscal target of reducing the deficit to 3% of GDP or less. Congress would then aim for a balanced budget. The House Budget Committee must recommend enforcement options within 180 days, such as procedures for when the target is not met.
The Rules Committee must suggest rule changes to help meet the target, including making budget rules more difficult to waive and requiring the Congressional Budget Office to analyze the impact of major bills. The resolution also urges Congress to avoid budget gimmicks.
Join the conversation as a VIP Member