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 Facts About Rising Income Inequality in the United States
The concentration of income toward high earners has become more pronounced over the last 30 years.
How Much Do We Spend on the Federal Workforce?
Here, we examine the federal government’s expenditure on its workforce, the evolution of its size over time, and the opportunities for budget savings.
Rising National Debt Increases Costs for American Families and Businesses
Federal fiscal policy is a significant but often overlooked factor in the affordability of vehicles, homes, and small business loans.