Hearing of the House Budget Committee - The Growing Costs of the Iraq War

Interview

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REP. ROSE DELAURO (D-CT): Thank you, Mr. Chairman.

And welcome, Dr. Orszag. Let me ask just a couple of questions.

Is it true, Dr. Orszag, that we are spending more on defense in this effort, in constant dollars, than we spent in World War II -- since World War II, I'm sorry, since World War II?

MR. ORSZAG: CBO has not done that analysis. I have seen some estimates from the Congressional Research Service and I'll I guess defer to the next panel for you to get the answers from them.

The only thing I would note is when looking over very long periods of time, economists typically like to look at things as a share of the economy rather than just in constant dollars.

REP. DELAURO: And -- but in terms of looking at it as a percentage of the economy then, should we make that same application to non-defense discretionary spending if we're looking at --

MR. ORSZAG: Again, over long periods of time, the best perspective on something involving the budget is typically as a share of the economy if you're going out more than 10, 20, 30 years kind of time span.

REP. DELAURO: Let me -- the -- and let me just follow up because I just want to have clarity on the carryover of unobligated 2007 funding.

DOD received $170 billion of supplemental funding or 2007. How much of that amount will carry over and remain available for obligation in 2008?

MR. ORSZAG: My understanding is that something probably a little bit under $50 billion and maybe in the 30 to 50 billion dollar range of funds already provided in budget authority have not yet been obligated.

REP. DELAURO: You made the point about the -- that we're dealing with procurement and not replacing equipment, et cetera. Do you have any way, or is it under your jurisdiction in any way, to take a look at that?

What you said is that the $39 billion -- I'm trying to find your comments here -- $39 million that we're spending on reconstruction, et cetera. Do you do anything by way of looking at those numbers and can determine what is dealing with any kind of overspending, any kind of waste, fraud, abuse efforts? Is that -- do you do those kinds of calculations?

MR. ORSZAG: I would say that's more of an activity for GAO rather than CBO.

REP. DELAURO: So that you can't -- you're just dealing with the aggregate numbers and what that cost of that spending is with regard to construction, et cetera?

MR. ORSZAG: That's correct.

REP. DELAURO: Okay.

Thank you very much, Mr. Chairman.

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