The Budget Enforcement Act in 1992: Necessary But Not Sufficient

The 1992 budget process followed the Budget Enforcement Act of 1990 (BEA) script, although not without a protracted conflict concerning the walls separating the three categories of discretionary spending. The walls were retained, spending caps were met, and the process was timely. What deficit reduction occurred was the result of spending below the FY 1993 defense cap. Congress neither raised taxes nor cut entitlements to reduce the deficit further. The deficit grew significantly, driven by entitlement spending, chiefly health care programs. The limits of the BEA approach to spending control and deficit reduction became apparent