CBO Projects Larger Budget Deficits
The Congressional Budget Office last week estimated budget deficits for the current Fiscal Year 2009 will be $1.8 trillion and for Fiscal Year 2010 will be $1.4 trillion. The White House had estimated the numbers at $1.75 trillion and $1.2 trillion, respectively. The previous deficit record, set last year, was $459 billion.
Over the next ten years, the deficits will total $9.3 trillion, according to CBO. The White House had estimated $7 trillion.
Why the difference? The Wall Street Journal explains:
One main reason for the difference in budget estimates is a difference in economic forecasts, with congressional views of long-term growth less optimistic than those of the White House — in part because of the long-term effects of so much government borrowing. The White House said its projection is more in line with those of private-sector economists. Congressional forecasters also use different accounting rules that tend to be more conservative.
Was this page helpful to you?
Thank you!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationLet us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback