Gramm-Rudman-Hollings Act


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Gramm-Rudman-Hollings Act,

officially the Balanced Budget and Emergency Deficit Control Act of 1985, U.S. budget deficit reduction measure. The law provided for automatic spending cuts to take effect if the president and Congress failed to reach established targets; the U.S. comptroller general was given the right to order spending cuts. Because the automatic cuts were declared unconstitutional, a revised version of the act was passed in 1987; it failed to result in reduced deficits. A 1990 revision of the act changed its focus from deficit reduction to spending control.
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The Influence of the Gramm-Rudman-Hollings Act on Federal Budgetary Outcomes, 1986-1989.
DRHP: The debt ratio held by the public FRB: Federal Reserve Bank GRH: The Gramm-Rudman-Hollings Act MFP: Multifactor productivity TDR: Total debt ratio
The United States promised to "implement fully the deficit reduction package for fiscal year 1986" specified in the Gramm-Rudman-Hollings act and indicated its intention to implement revenue-neutral tax reform.
The mandatory deficit reduction provisions of the Gramm-Rudman-Hollings Act once again make the VA health care system a target for a 2% reduction ($240 million) in funding availability for direct health care programs and significantly greater amounts for indirect and administrative amounts for indirect and administrative aspects of the program.
Reality faded further in 1985, when the Gramm-Rudman-Hollings Act began requiring the budget to meet an annual deficit reduction target.