CBO’s Reestimate of the President’s Budget
The Congressional Budget Office (CBO) has released its Preliminary Analysis of the President’s 2011 Budget. CBO’s report re-estimates the President’s budget using CBO’s economic and technical assumptions. Over the 2011-2020 period CBO’s deficit estimates are more that $1 trillion higher than those projected by the Administration. In 2015, CBO projects a deficit of nearly $800 billion, or over 4 percent of GDP, well above the President’s 3 percent of GDP target. Debt held by the public is projected to reach $20 trillion by the end of the decade— an increase of over 170 percent from its 2009 level according to CBO. As a result, interest payments on the debt are expected to quadruple between 2010 and 2020. For this year, CBO estimates a lower deficit than the President primarily due to differences in estimated spending. Starting in 2011, CBO’s deficit estimates are higher largely due to lower projected revenues, which reflect less optimistic economic assumptions than used by the Administration.
Further Reading
5 Key Facts About Rising Healthcare Spending in the United States
Healthcare spending in the United States is a key driver of the nation’s fiscal imbalance and has risen notably over the past few decades.
The Highway Trust Fund Explained
The funding structure of the Highway Trust Fund requires serious, long-term changes, but how to approach reform remains a topic of debate.
Quiz: How Much Do You Know About the Federal Budget?
A strong fiscal outlook is an essential foundation for a growing, thriving economy. Take our quiz to see how much you really know about the federal budget.