Explain The 1993 Budget Act?

On entering office in 1993, President Bill Clinton submitted a major economic plan, which was enacted by congress as the Budget Act 1993. This measure was aimed at decreasing the federal budget deficit primarily through an income-oriented approach of higher taxes and lower government spending; it contained no major price oriented incentives. The main features of the 1993 act re the following:

1. The measure contains a number of tax increases, primarily falling on higher income individuals.
2. The 1993 package continued to wind down the cold war with major reductions in defense spending.

3. As the debt rises, a vicious cycle of debt, debt service, larger deficits and more debt ensues. Deficit reduction set off a virtuous cycle. Because of the shrinking deficit, interest has entered a virtuous cycle and is now a declining share of the federal budget.
4. The effect of these steps has been a significant reduction in then structural federal deficit with the structural deficit declining from $242 billion in 1993 to $91 billion in 1997. The reduction representing a reduction in the structural deficit of 2.5 percent of gross domestic product was due in approximately equal measures to tax increases and expenditure reductions.