Federal Spending Cutbacks Slow Recovery – WSJ.com

BEN CASSELMAN and CONOR DOUGHERTY: Recent economic data show that long before the fiscal cliff hits, federal spending already is falling — and taking a toll on the recovery…….State and local governments are projected to receive $20.8 billion in federal stimulus funds in the 2012 fiscal year, ending in September, down from a combined $180.7 billion in fiscal 2010 and 2011, according to the Government Accountability Office……At the same time, military spending has fallen for three straight quarters as wars in Iraq and Afghanistan have wound down and as the Pentagon prepares for further budget cuts.

via Federal Spending Cutbacks Slow Recovery – WSJ.com.