An Analysis Of The Effects Of Indexing For Inflation On Federal Expenditures V. PAD-79-22

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PAD-79-22 1 (1979-08-15)

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BY THE COMPTROLLER GENERAL
110151

Report To The Congress

OF THE UNITED STATES

An Analysis Of The Effects

Of Indexing For Inflation

On Federal Expenditures

Over half of all Federal expenditures are
indexed for inflation. Indexed expenditures
increase automatically when inflation occurs.
For a number of reasons, Federal expend-
itures which are indexed have been increasing
more rapidly than total Federal spending and
much more rapidly than inflation.

Given the large and growing share of the
budget accounted for by indexed programs, it
would be difficult to bring Federal spending
under control without some check on index-
ing. However, such a check should be weighed
against its possible consequences and its ef-
fectiveness in an overall anti-inflation pro-
gram.

SD S-P,

110151

PAD-79-22
AUGUST 15, 1979