Comptroller General Gene L. Dodaro told the House Budget Committee that in fiscal 2016 alone, the federal government made an estimated $144 billion in improper payments. The administration believes spending can be further reduced through an initiative that requires federal agencies to scrutinize their budgets for potential savings from improving efficiency and effectiveness, merging or eliminating agencies or programs, or ending activities that are better left to state or local government or the private sector. As the deficit falls, the government also saves money as a result of less borrowing. A budget that cuts spending can benefit from a macroeconomic analysis that shows deficit reduction producing economic benefits. For example, the fiscal 2017 budget resolution written in 2016 by House Budget Chairman Tom Price , who is now secretary of Health and Human Services, gained more than $400 billion in additional deficit reduction from a CBO analysis that estimated the falling deficit envisioned under the plan and the repeal of the health care law would increase economic activity. White House officials said Trump’s plan to cut tax rates, simplify the tax code and make changes to the way U.S. companies are taxed on overseas profits will pay for itself primarily through economic growth but also through eliminating deductions, credits and other tax breaks. The projections of increased revenue will rely in part on dynamic scoring, a method of analysis that estimates how much the economy will grow as a result of legislation, and what amount of additional revenue will be produced by the economic expansion and then “feed back” into the federal budget.

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