February 5, 2007
HP-246

Proposed Treasury Budget for FY 2008

The President's proposed budget for Treasury in fiscal year (FY) 2008 reflects the Department's dedication to promoting economic opportunity, strengthening national security, and exercising fiscal discipline.

"The President's proposed Treasury funding for FY 2008 supports Treasury's priorities of promoting economic opportunity, combating threats to the national and economic security of the U.S., and striving for a more effective and efficient federal government," said Treasury Secretary Henry M. Paulson. Speaking of the budget as a whole, Paulson said "If we can keep our economy growing by continuing with economic policies that keep taxes low and drive job creation and productivity, while restraining spending, we can achieve a balanced budget by 2012."

The Treasury appropriations request for FY 2008 is $12.1 billion, a 4.7 percent increase over the President's FY 2007 request of $11.6 billion.

The Treasury Department, through offices including Economic Policy, International Affairs, Tax Policy, and Domestic Finance, provides analysis, economic forecasting, and policy guidance on issues ranging from tax policy to international financial crises.

The FY 2008 budget provides additional resources to support Treasury in its role as Chair of the Committee on Foreign Investment in the United States (CFIUS), including administering the interagency CFIUS process.

Treasury requests $28.6 million for the Community Development Financial Institutions (CDFI) Fund, $20.7 million above the FY 2007 request. These funds will allow CDFI to continue its mission to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States.

The Office of Terrorism and Financial Intelligence (TFI) plays an important role in helping to combat threats to the nation and the financial system of the United States. By drawing on our unique and powerful authorities, as well as financial intelligence, the Treasury helps to safeguard the financial system against abuse by weapons proliferators, terrorists, narcotics traffickers, rogue regimes, and other bad actors. To support these efforts, Treasury requests a 23.8% increase for TFI relative to the FY 2007 request.

One of Secretary Paulson's highest priorities is keeping the U.S. on the path to achieve the President's goal of reducing budget deficits and balancing the budget by 2012. The Treasury Department is committed to reducing the deficit by exercising fiscal discipline and ensuring the most efficient and effective use of taxpayer dollars while at the same time boosting revenues through continued economic growth.

As part of Treasury's comprehensive strategy to address the tax gap, the President's Budget requests $11.095 billion in appropriations for the IRS to expand its enforcement activity and to continue improvements in taxpayer service.

An in-depth press briefing on the revenue proposals, including release of the "Blue Book" will be held at 1:00pm (EST) today in room 4121 of the Treasury Building. (Media without Treasury press credentials should contact Frances Anderson at (202) 622-2960, or frances.anderson@do.treas.gov with: name, Social Security number, and date of birth.)

Summary of Treasury's FY 2008 Budget Request:

http://www.treas.gov/offices/management/budget/budgetinbrief/fy2008/