By David Cho
Monday, February 1, 2010; 3:46 PM
The Treasury Department reported a substantial change to its fiscal 2011 budget related to its bailout of Wall Street.
The projected cost of the bank rescue, known as the Troubled Assets Relief Program, was slashed to $117 billion, down from an estimate of $340 billion made last summer. The budget unveiled last year when the financial panic was ongoing projected the need for an additional $250 billion for another financial bailout, but plans for the second package were dropped as the banking system stabilized over the summer.
Treasury's proposed 2011 budget would invest $8 billion in the Internal Revenue Service to boost its enforcement and modernize its technology, but the department said it would recover that cost through better tax collections. The tax department operated on a $11.5 billion budget in 2009, making it the largest division within the Treasury.
Under the 2011 budget proposal, IRS funding would increase to $12.6 billion.
For the full budget, click here.