Defict Reduction in the Spending Reduction Act

How much does the Spending Reduction Act of 2012 reduce the deficit?

CBO estimates the Spending Reduction Act (SRA) will reduce the deficit by $218 billion over 10 years through a combination of changes to direct spending and revenue.  The SRA would also reduce discretionary spending caps set in the Budget Control Act for fiscal year 2013 from $1,047 billion to $1,028 billion resulting in further savings of $19 billion.  Taken together, the total savings in the SRA is estimated at $237 billion over 10 years. 

Read CBO’s estimate for the Spending Reduction Act here.