GOP plan produces lower-than-expected savings

AP News
Posted: Jul 26, 2011 5:55 PM
GOP plan produces lower-than-expected savings

An official congressional analysis says a budget plan by House Speaker John Boehner (BAY'-nur) would produce less savings than originally promised.

The Congressional Budget Office analysis says the plan would generate less than $1 trillion in spending cuts over the coming decade. Boehner promised $1.2 trillion in cuts when he revealed the plan Monday.

The CBO analysis is a setback for the measure, which promises the savings to balance out a $1 trillion increase in the nation's borrowing authority in hopes of avoiding a first-ever government default.

The measure would generate $840 billion in savings over the coming decade by capping the day-to-day budgets of Cabinet agencies. Over $100 billion more would come from savings on interest payments.