Suppose there was a debate regarding intelligence budgets and the Democrat was arguing for a budget increase from $40 billion to $41 billion and the Republican was arguing for the budget to increase to $45 billion. Further suppose intelligence salaries and procurement of the same spy systems are project to rise 5%. The Republican accuses the Democrat of proposing a cut to intelligence gathering, the Democrat insists his plan increases that spending. What is going on here?

Question

Quizplus · Accepted Answer

The Republican is using baseline budgeting, which assumes that any increase in spending is a cut from what they were originally expecting. However, the Democrat's proposed budget increase from $40 billion to $41 billion is still an increase, even though it is less than the Republican's proposed increase to $45 billion. The 5% projected rise in salaries and procurement costs would still be covered by the Democrat's proposed budget increase.

Suppose There Was a Debate Regarding Intelligence Budgets and the Democrat