"The President's fiscal year (FY) 2004 budget includes a deficit of $307 billion (an estimated 2.7% of gross domestic product, GDP). Under the President's proposals and estimates, the deficit shrinks through FY2008, the last year of the Administration's estimates, when it will reach $190 billion (1.4% of GDP). The proposals call for speeding up and making permanent many of the tax cuts enacted over the last two years, along with tax changes for economic stimulus, tax incentives, and expiring tax provisions. The tax proposals would reduce taxes an estimated $493 billion between FY2004 and FY2008 and by $1,461 billion between FY2004 and FY2013. The President would increase spending in some areas (health) and reduce it in others (natural resources and environment). Overall, the proposals reduce outlays -- when measured against the baseline estimates -- by $40 billion in FY2004 and by $529 billion over the five years. Even with these changes from baseline levels, both total receipts and total outlays would be larger in FY2004 than they are estimated to be in FY2003, and larger in FY2008 than in FY2004."
CRS Report for Congress, RL31784
U.S. Department of State: http://www.state.gov/