Government

CBO federal budget deficit projections 

In fiscal year 2016, the federal budget deficit will increase in relation to economic output for the first time since 2009, CBO estimates. If current laws generally remained unchanged—an assumption underlying CBO’s baseline projections—deficits would continue to mount over the next 10 years, and debt held by the public would rise from its already high level.

CBO’s estimate of the deficit for 2016 has increased since the agency issued its previous estimates in March, primarily because revenues are now expected to be lower than earlier anticipated. In contrast, the cumulative deficit through 2026 is smaller in CBO’s current baseline projections than the shortfall projected in March, chiefly because the agency now projects lower interest rates and thus lower outlays for interest payments on federal debt. Nevertheless, by 2026, the deficit is projected to be considerably larger relative to gross domestic product (GDP) than its average over the past 50 years.

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2 replies »

  1. When will the madness stop. The nation cannot continue to rack up debt. Even if we could stop adding to the debt and pay off 100 billion in debt per year, it would take 190 years to pay it off. This would require the Federal Government to take in 800 Billion to 1 Trillion more per year in revenue or cut spending by 400 to 500 billion and take in 400 to 500 Billion more in revenue. Something the political elite would never do. The economic train wreck that is coming is going to make the great depression of the 1930’s look like a Sunday picnic.

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    • Well if we listen to the likes of Krugman this kind of growing debt is no problem. Image what could be done just with what we pay in interest?

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