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The federal government made $98 billion in questionable payments to contractors and individuals last year, the Obama administration said Tuesday, a sharp
increase from the
previous year when the government
improperly paid out an estimated
$72 billion.
The increase does not necessarily mean fraud is growing, said White House budget director Peter Orszag. But the administration is moving quickly to address the issue.
Orszag said Tuesday night that new, stricter government methodology for identifying outlays is behind the sharp rise in improper payments, as is the large increase in federal spending to response to the deep economic downturn.
Improper payments cover a wide range of occurrences, ranging from outright theft to a contractor unwittingly being issued two checks for the same service or a doctor receiving a Medicaid payment that is claimed with an illegible signature.
Still, Orszag said, the rate of the questionable payments has to be reduced. "We can no longer tolerate these errors, mistakes and misdeeds," he said."
