589 Ways to Improve Government Efficiency and Reduce Deficits
In May, the U.S. Government Accountability Office (GAO) released its 15th annual report to Congressional Committees identifying a wide range of opportunities to reduce deficits and increase government efficiency. The report outlines 589 ways to find cost savings by reducing overlap, duplication, and fragmentation across the federal government, including 148 new recommendations in 43 new topic areas. GAO concludes that addressing these areas would save more than $100 billion.
The below chart highlights a selection of the larger items included in the report with some of the highest-value cost savings coming from the health, IT, and energy sectors.
GAO also proposed 148 new recommendations to improve efficiency that increase revenues or reduces costs. Those proposals would vary in cost-savings and affect the Department of Defense, the Department of Energy, and other agencies
GAO's report takes on heightened significance when viewed in the context of America's growing national debt. Similar recommendations made by GAO in the past have produced measurable savings. The report notes that Congress and federal agencies have fully or partially addressed approximately 78 percent of the more than two thousand items GAO identified from 2011 to 2025, resulting in approximately $725 billion in cost savings.
The national debt has surpassed $36 trillion and the Congressional Budget Office projects the federal debt will rise to 118 percent of GDP by 2035. Interest payments alone are projected to reach $952 billion in fiscal year 2025 and grow to $1.8 trillion by 2035. Congress and the Administration should work together on meaningful fiscal reforms — and GAO’s report provides many promising places to start.
Photo source: GAO
Further Reading
How Is K-12 Education Funded?
Public schools for students in kindergarten through 12th grade are financed through a combination of local, state, and federal dollars in proportions that vary across and within states.
How Much Do We Spend on the Federal Workforce?
Here, we examine the federal government’s expenditure on its workforce, the evolution of its size over time, and the opportunities for budget savings.
What Are Earmarks and What Purpose Do They Serve?
Earmarks have been controversial, but nevertheless were reinstated by Congress in 2021 after a 10-year moratorium.