HealthInsuranceCoverage,byRaceandEthnicity,2023 Percent 100 Uninsured Other 80 Coal-Fired PowerPlant CO 2 Pipeline CO 2 Pipeline CompensationCosts DavidE.Mosher DirectorofNationalSecurityAnalysis BeforetheSubcommitteeonPersonnel CommitteeonArmedServices UnitedStatesSenate JULY26|2023 fslackoninflationtovarywithsupplyconditions omy,wemodifythestandardNKPCasfollo Defense Total Trillion $805 $6.1 Billion 3.0% ofGDP Outlays 22.7% Medicare $839 ofGDP Nondefenseoutlayspay formanyprogramsrelatedto veterans’healthcare,education, andtransportation;certainhealth programs;certainincomesecurity programs;andotheractivities. Billion 3.1% ofGDP Othermandatoryoutlaysinclude spendingforfederalcivilianandmilitary retirementbenefits,someveterans’ benefits,andothermandatoryprograms, minusincomefromoffsettingreceipts (otherthanthoseforMedicare). Medicare outlays consistofbenefit paymentsless Other $5021.9% Income BillionofGDP SecurityPrograms $2.2 Individual $4481. IncomeTaxesTrillion8.1% Billionof ofGDP Otherrevenues includecollectionsof customsduties,excise taxes,andestateand gifttaxes;miscellaneous feesandfines;and remittancesfromthe FederalReserve. Payroll$1.6 TaxesTrillion6.0% ofGDP Corporate$420 IncomeBillion1.6% TaxesofGDP Other$229 Billion tal 0.8% $4.4 ofGDP EthanolPlant OiltoMarket OilRig OilbyStored CarbonCaptureandStorage intheUnitedStates TESTIMONY ApproachestoReducingthe DepartmentofDefense’s THEFEDERAL BUDGETIN FISCALYEAR 2023 Mandatory $3.8Trillion 13.9%ofGDP Social Security $1.7Trillion 6.4%ofGDP Dicretionary $1.35.0% Nondefense TrillionofGDP $9173.4% BillionofGDP Net $659Billion Interet 2.4%ofGDP TransparencyatCBO:Plansfor2024andaReviewof2023 MandatorySpending Primarilypaymentsforbenefitprogramswhoseeligibilityrules andbenefitformulas aresetbylaw Medicaidincomefrom $6162.3%premiumsand BillionofGDPotheroffsettingDisplaced receipts. CO2 7% GDPCO DECEMBER|2023 Budget Revenue sTaxesandotherfunds oncollectedfromthe thepublic,publicthatarisefrom interestthegovernment’s exerciseofits sovereignpowers RevToTrillion enues16.5%Categories ofGDP Payrolltaxesfund programs, socialinsuranceofthe primarilySocialSecurity andMedicare’sHospitalInsuranceprogram. andwiththeamountof ws: (2)DicretionarySpendingNetInteret SpendingthatThegovernment’ lawmakerscontrolinterestpayments annuallythroughdebtheldby appropriationactsoffsetbythe incomethatthe governmentreceives NongroupCoverage theBasicHealthPro Medicare 60 Medicaid andCHIP 40 u = = = = u +E+ +aI(s>0)s bs+W+ u log u tt t+1 t t t t t t t t t t t t n t t APRIL|2024 AtaGlance TransparencyisatoppriorityfortheCongressionalBudgetOffice,andtheagencycontinuestobol-steritseffortstobetransparent.ThoseeffortsareintendedtopromoteathoroughunderstandingofCBO’swork,helppeoplegaugehowestimatesmightchangeifpoliciesorcircumstancesdiffered,andenhancethecredibilityoftheagency’sanalysesandprocesses. In2024,theagencywillundertakeavarietyofactivitiesaimedatfosteringtransparency,suchasthefollowing: •SharingmoreinformationtohelppeopleunderstandthefederalbudgetprocessandCBO’sroleinit;and •Explainingthemethodsitusesforitsanalysesinseveraltopicareas,includingnationalsecurity,climatechange,andeconomicprojections. ThoseeffortswillbuildonCBO’sactivitiesin2023,whichincludedtestifyingbeforeCongressionalcommitteesandansweringMembers’questions,releasingdata,evaluatingtheaccuracyoftheagen-cy’sestimates,comparingcurrentandpreviousestimates,estimatingtheeffectsofpolicyalternatives,characterizingtheuncertaintysurroundingestimates,creatingdatavisualizations,andconductingoutreach. www.cbo.gov/publication/59975 Contents Summary1 Plansfor20241 Reviewof20231 Background2 CBO’sTransparencyPlansfor20242 TestifyingandPublishingAnswerstoQuestions2 ExplainingAnalyticMethods3 ReleasingData4 AnalyzingtheAccuracyofCBO’sEstimates5 ComparingCurrentEstimatesWithPreviousEstimates5 ComparingCBO’sEstimatesWithThoseofOtherOrganizations5 EstimatingtheEffectsofPolicyAlternatives5 CharacterizingtheUncertaintyofCBO’sEstimates5 CreatingDataVisualizations5 ConductingOutreach5 AReviewofCBO’sTransparencyEffortsin20236 TestifyingandPublishingAnswerstoQuestions6 ExplainingAnalyticMethods6 ReleasingData8 AnalyzingtheAccuracyofCBO’sEstimates11 ComparingCurrentEstimatesWithPreviousEstimates11 ComparingCBO’sEstimatesWithThoseofOtherOrganizations12 EstimatingtheEffectsofPolicyAlternatives12 CharacterizingtheUncertaintyofCBO’sEstimates13 CreatingDataVisualizations14 ConductingOutreach15 AboutThisDocument19 TransparencyatCBO:Plansfor2024andaReviewof2023 Summary TransparencyisatoppriorityfortheCongressionalBudgetOffice,andtheagencycontinuestobolsteritseffortstobetransparent. WhenCBOsaysitstrivestobetransparent,ithasthreespecificgoalsinmind: •Topromoteathoroughunderstandingoftheagency’sanalysesthroughaccessible,clear,anddetailedcommunication; •Tohelppeoplegaugehowestimatesmightchangeifpoliciesorcircumstancesdiffered;and •Toenhancethecredibilityoftheagency’sanalysesandprocessesbyshowingthattheyaregroundedindataandhigh-quali