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
National Debt Puts Upward Pressure on Inflation and Interest Rates
America’s unsustainable fiscal outlook can have “significant consequences for price stability, interest rates, and overall economic performance,” according to a new report.
Here’s What a Budget Gimmick Is and How to Spot One
Lawmakers should avoid the use of budget gimmicks, which can hide the true fiscal impact of legislation.
What Is the Farm Bill, and Why Does It Matter for the Federal Budget?
The Farm Bill provides an opportunity for policymakers to comprehensively address agricultural, food, conservation, and other issues.