Baltimore – According to the Congressional Budget Office, the federal government posted a $ 2.3 trillion deficit this year, down about $ 900 billion from last year when Congress provided historic amounts of financial assistance due to the coronavirus pandemic. I will.
Strong economic growth has helped reduce the expected shortage this year. Still, if President Joe Biden’s $ 1.9 trillion coronavirus bailout package is enacted, the deficit could soon be revised upwards. Additional aid after about $ 4 trillion was approved last year will add more red ink when enacted, but is not included in Thursday’s CBO forecast.
Excluding the Biden plan, this year’s deficit is 10.3% of GDP. This is a measure of the total value of economic goods and services. The last two years have had the largest deficit compared to GDP since 1945.
The CBO expects the budget deficit to drop to about $ 1 trillion in 2022 as the economy recovers and the need for government spending diminishes. The deficit from 2022 to 2031 is estimated to average 4.4% of GDP.
Decades of deficit spending mean that the total federal debt held by the public is slightly greater than GDP. This figure is projected to rise to 107% of GDP by 2031 as spending on Medicare and social security increases.
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The CBO expects a $ 2.3 trillion deficit ahead of the Biden bailout program.
Source link The CBO expects a $ 2.3 trillion deficit ahead of the Biden bailout program.