GAO chief laments budget crisis

The federal government has dug itself into a deep financial hole and cannot climb out until it changes the way it tracks spending and performance, according to Comptroller General David Walker.

Walker, the head of the General Accounting Office and a fiery advocate for government accountability,

"The bottom line is that, in my view, the federal government's current financial statements and annual reports do not give policy-makers and the American people an adequate picture of our government's overall performance and true financial condition," he said.

Part of the problem, Walker said, is that the government does not count some of its largest entitlement programs, such as Social Security, Medicare and veterans benefits, as liabilities on its annual financial statements.

He suggested that the long-term costs of major spending and tax proposals be fully considered before they become law. Also, studies of Social Security and Medicare should not just be based on solvency today, but also on long-term sustainability. And, he said the government's organizational structure should be streamlined and simplified to improve efficiency.

-George Cahlink