Statement of Gene L. Dodaro, Comptroller Gen. of the U.S. The federal government is the world's largest and most complex entity, with about $3.5 trillion in outlays in FY 2010 that fund a broad array of programs and operations. GAO's long-term simulations of the federal budget show absent policy change growing deficits accumulating to an unsustainable increase in debt. While the spending side is driven by rising health care costs and demographics, other areas should also be scrutinized. In addition, there are significant performance and management challenges that the federal government needs to confront.This testimony discusses the Government Performance and Results Act (GPRA) Modernization Act of 2010 (GPRAMA), as the administration begins implementing the act. It is based on GAO's past and ongoing work on GPRA implementation, as well as recently issued reports (1) identifying opportunities to reduce potential duplication in government programs, save tax dollars, and enhance revenue; and (2) updating GAO's list of government operations at high risk due to their greater vulnerabilities to fraud, waste, abuse, and mismanagement, or the need for transformation. Figures. This is a print on demand report.