War in Iraq has Little Impact on Deficit?

April 12, 2006

Diaz Hendropriyono
Washington, DC

Hold on a second! You know what? The cost of funding the Iraq War might have been made deliberately to appear to have a little effect on the deficit. Although the use of supplemental appropriations dwindled in the 1990s, spending through supplementals soared, as the War on Terror unfolded. Both the Afghan and Iraq Wars were funded through emergency supplemental appropriations. By doing so, the deficit in the president’s annual budget proposal would look smaller, as a huge chunk of spending is taken out of the regular budget and put in the budget later during the year. It's quite tricky, isn't it? It's like magic!

Some costs associated with the Iraq War should be definitely taken out of the emergency supplementals as many of the expenses could have been anticipated in the regular budget. Such a practice used by the Bush administration may have been performed to defend the economic viability to fund the Iraq War.