The congressional budget deal hammered out this week would raise spending by about $90 billion over the next few years, while offsetting that new spending with $76 billion in new revenue and spending cuts in later years, the Congressional Budget Office said Tuesday.
That means the deficit would grow by at least $14 billion over 10 years.
In its estimate of the deal between congressional negotiators and the White House, the office said spending would be raised by $46 billion and revenues would be increased by $30 billion over 10 years.
Meanwhile, spending would be boosted by roughly $90 billion in fiscal 2016 and 2017.
The bulk of that would be the result of lifting caps on spending authority for those years, with the actual funds being paid out over several years.
But more than $10 billion in spending would be added through a war spending account that is not subject to the caps.
In terms of the offsetting spending, the biggest planned cut would be the extension of the spending caps — which were the result of debt ceiling negotiations in 2011 — by an extra year, through 2025. That would lower spending by nearly $20 billion in that year.
Sales of oil from the strategic petroleum reserve would rack up $5 billion in revenue. Changes to pension accounting would yield another $6.5 billion.
Under the deal, healthcare spending would increase in the next two years by nearly $6.5 billion, to prevent some Medicare beneficiaries from seeing their premiums rise. Over the next eight years, however, spending would be cut by even more by changes in payments to some providers. Altogether, spending would decrease by $6.3 billion over the 10 years, according to the budget office.
The plan would see $4.4 billion in Social Security savings by tightening eligibility for disability insurance benefits and increasing penalties for fraud in the program. The deal would change calculations for civil penalties, saving $2.2 billion in spending. Lastly, the federal government would raise $4.4 billion by commanding the Federal Communications Commission to auction off spectrum.
A large part of the planned increase in revenue would come from stricter tax compliance measures for businesses structured as partnerships. That part of the plan would raise $11.2 billion over 10 years.
Another $12.2 billion would be raised by requiring manufacturers of generic drugs to rebate government programs if the cost of their drug outpaces inflation.
The deal also would subject civil monetary penalties to a new inflation measure, boosting fund recovered by agencies. That would save $1.3 billion.
