US Treasury Comments On Proposed Budget for FY 2009

by Mike Godfrey, Tax-News.com, Washington

05 February 2008

The US Treasury Department has this week stated that the President's proposed budget for it in fiscal year 2009 reflects the Department's continued dedication to promoting economic growth and opportunity, strengthening national security, and exercising fiscal discipline.

"The President's proposed budget for Treasury supports the Department's pro-growth priorities and commitment to promoting economic growth and stability, and ensuring the safety, soundness, and security of the US and international financial systems," announced Treasury Secretary Henry M. Paulson on Monday.

The Treasury appropriations request for FY 2009 is USD12.5 billion, an increase of 3.8% over the FY 2008 enacted budget of USD12.0 billion.

The Treasury Department's offices of International Affairs, Tax Policy, Economic Policy, and Domestic Finance provide technical analysis, economic forecasting, and policy guidance on issues ranging from federal financing to responding to international financial crises.

The FY 2009 budget provides an additional USD3.0 million to Domestic Finance's Office of Debt Management to update their information technology systems, in order to ensure that accurate and timely projections can be made.

Additional funds of USD07 million are requested to recruit investment flow analysts and other specialists. The Treasury argued that this funding is necessary to provide additional support for, and measure progress toward, achieving the International Affairs objective of ensuring national security and increasing economic growth.

The Office of Terrorism and Financial Intelligence marshals the Treasury Department's intelligence and enforcement functions, aimed at safeguarding the financial system against illicit use and combating national security threats.

To support these efforts, Treasury requests an USD11.0 million increase for TFI, including USD5.5 million for the Financial Crimes Enforcement Network to ensure effective management of the Bank Secrecy Act.

One of Secretary Paulson's top priorities is keeping the US on the path to achieve the President's goal of reducing budget deficits and balancing the budget by 2012, the Treasury stated, explaining that:

"The Treasury Department is committed to reducing the deficit by managing the nation's finances effectively and ensuring the most efficient use of taxpayer dollars and collecting the revenue due to the federal government."

The budget therefore requested USD11.4bn for the Internal Revenue Service, an increase of 4.3% over the FY 2008 enacted budget for the IRS to expand its enforcement activities and to continue improvements in taxpayer service.

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