CBO Budget Forecast Projects Larger Deficits After Congress Increases Spending
Should Congress work to reduce budget deficits & the national debt?
The Congressional Budget Office (CBO) on Wednesday updated its budget and economic outlook for the 2019-2029 period to project an increase in budget deficits of $872 billion over that period stemming from increased spending.
The CBO now expects the FY2019 budget deficit to be $63 billion more than it had projected in May (up to $960 billion), and that aggregate deficits over the 2020-2029 period will be $809 billion more than projected because of recently enacted bills that increased spending. Here are the factors that drove the changes in projected deficits:
- The spending levels established by the Bipartisan Budget Act of 2019 were projected to increase deficits by $1.7 trillion (including increased debt service costs) over the 2019-2029 period.
- Spending bills to provide relief for the border crisis and natural disasters are each expected to increase deficits by $0.3 trillion (for a combined total of $0.6 trillion).
- Lower than anticipated interest rates are projected to reduce the cost of servicing the national debt by $1.4 trillion over the 2019-2029 period.
While those dynamics changed the outlook, the CBO’s estimation of mandatory programs such as Social Security and Medicare along with debt service remained constant ― they’re expected to grow at a faster rate than discretionary spending on defense & domestic programs to increase annual deficits:
— Eric Revell
(Photo Credit: iStock.com / kaarsten)
The Latest
-
IT: 🛢️ New Vermont measure could charge Big Oil for climate damages, and... Do you think Trump is guilty?Welcome to Friday, May 10th, friends... Vermont could be one of the first states to hold Big Oil accountable for the damages read more...
-
Stormy Daniels Takes the Stand in Trump Hush Money TrialUpdated May 9, 2024, 5:00 p.m. EST Adult film star Stormy Daniels, also known as Stephanie Clifford, spent two days on the stand read more... Law Enforcement
-
Vermont Measure to Charge Big Oil for Climate DamagesWhat’s the story? Vermont is expected to become one of the first states to hold Big Oil accountable for the damages caused by read more... Environment
-
IT: Trump's 2016 'deny, deny, deny' campaign strategy, and... How can you help the civilians of Ukraine?Welcome to Wednesday, May 8th, weekenders... As Trump's hush money trial enters it's third week, the 2016 campaign strategy of read more...