Government Economy and Spending Reform Act of 1981

Government Economy and Spending Reform Act of 1981 - Title I: Authorizations of New Budget Authority - Terminates all budget authority for Federal programs on specified dates every five years according to the functional or subfunctional category of each program as set forth in the fiscal year 1982 budget.

Requires the Comptroller General to specify in a report to Congress by April 1, 1986, the laws under which each Federal program is carried on, the amount of new budget authority received by each such program during the four fiscal years ending before January 1, 1981, and the programs for which no outlays have been made during the last two fiscal years ending before January 1, 1981.

Requires the Committees on Appropriations and the Committees on the Budget of both Houses of Congress to review such report and to identify each program's functional and subfunctional category.

Prohibits providing new budget authority after the applicable review date set forth in this Act unless the provision of such budget authority is specifically authorized by law or the standing rules of either House of Congress.

Title II: Zero-Base Program Review - Sets forth a timetable for Congressional "zero-base review" of Federal programs (an evaluation of a given program to determine whether its merits warrant its termination or continuation at a level less than, equal to, or greater than its existing level). Requires each Congressional committee conducting a zero-base program review to adopt tentative review plans, receive reports from the Comptroller General and Federal agencies on the program being reviewed, and report to their respective House the results of such zero-base review of the program. Sets forth minimum objectives of inquiry for such reviews. Requires that any committee reporting pursuant to this Act recommend the extent to which any program reviewed should be continued or eliminated.

Title III: Continuing Review - Amends the Legislative Reorganization Act of 1970 to require, whenever the Comptroller General issues a report which discloses any substantial deficiency in the achievement of a objectives of a Federal program, the agency conducting such program to report to specified Congressional committees 60 days after such report and every six months thereafter to delineate the actions taken with respect to such deficiency. Requires that such agency continue to issue such reports until such time as the Comptroller General determines that no purpose is served by their submission.

Amends the Budget and Accounting Act, 1921, to require the inclusion in the Budget of a statement of the specific objectives of each Government program and a comparison, in each subsequent Budget, of the achievement of such objectives for the last completed fiscal year with the planned objectives of such year.

Title IV: Miscellaneous - Requires the Director of Management and Budget to study the feasibility of zero-base budgeting for Federal agencies. Requires the Director of the Congressional Budget Office to study the relationship between personnel ceilings on employees of the United States and the use of private contracts to carry out programs and activities. Requires the Directors to report to Congress on the results of such studies.

Requires Federal agency heads to report requests for new budget authority to Congress. Requires specified committees to study the effectiveness of the zero-base review procedures required by this Act.

Directs Congress to complete action during the second session of the Ninety-eighth Congress on legislation which will continue or terminate the zero-base review of programs.