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
7 Charts That Illustrate America’s Growing Fiscal Stress
America’s fiscal situation is daunting, with key budgetary warning signs and hurdles approaching in the near term.
86 Ways to Reform the Tax Code — and Why It’s Only Half the Solution
Tax policy is about trade-offs between how much revenue a tax will raise, who will bear the burden, and how a change will impact economic incentives.
Fed Raises Rates for First Time Since 2023 as Interest Costs Top $1 Trillion
High interest rates on U.S. Treasury securities increase the federal government’s borrowing costs.