In a letter sent yesterday to House Budget Committee Chairman John Spratt, Peter Orszag, the director of the Office of Management and Budget, stated the agency's analysis of the American Recovery and Reinvestment Act shows three-quarters of the overall package will be spent in the first 18 months.
Below is an excerpt from the letter:
“The Congressional Budget Office recently released an analysis of a component of the economic recovery proposal; that analysis, however, did not assess the overall package. Our analysis indicates that at least 75 percent of the overall package (including its tax component and the other spending provisions that were not analyzed by the Congressional Budget Office) will be spent over the next year and a half (the rest of fiscal year 2009 and fiscal year 2010).” [1/22/09]
Next week, the House will vote on the American Recovery and Reinvestment Act, working from priorities shared with President Barack Obama.
The plan will create and save 3 to 4 million jobs, jumpstart our economy, and transform it for the 21st century.
Unprecedented accountability and transparency measures are built in to help ensure tax dollars are spent wisely. $550 billion is strategically targeted to priority investments; $275 billion in targeted tax cuts will also help spur economic recovery.