The Congressional Budget Office (CBO) estimates that under the policies proposed in the President's budget for fiscal year 1996, deficits would increase from $177 billion in 1995 to $276 billion in 2000. Except for the current year, the estimates of deficits under the President's policies based on CBO's economic and technical assumptions are higher than those stated in the President's budget. CBO estimates that the deficit in 2000 would be $82 billion higher than the Administration projects. The President's policies would not substantially change the deficits from the levels that would result under current laws and policies. An exact estimate of the change, however, depends on what assumption is made about the level of discretionary spending under current policy after the statutory limits on discretionary spending expire at the end of 1998. (CBO assumes that baseline discretionary spending will equal the limits in 1996 through 1998.) Compared with CBO's baseline projections that assume discretionary spending in 1999 and 2000 will equal the 1998 limit adjusted for inflation, the President's policies would reduce the cumulative deficits in 1995 through 2000 by almost $30 billion. Compared with CBO's baseline projections that assume discretionary spending in 1999 and 2000 will be at the same level as in 1998, the President's policies would increase the deficits over the next six years by about $31 billion. JMD.