CBO releases updated deficit numbers
This morning the Congressional Budget Office released new numbers for its projections of the federal budget through 2020. This is an update to the CBO’s score of the budget from March of this year.
There are two main government entities that put out budget numbers: the CBO (whose numbers were released today) and the Office of Management and Budget, which is the division of the White House in charge of writing the budget. Both put out budget numbers twice a year. We looked at the OMB’s Mid-Session Review last month. Here are the highlights from today’s CBO release:
– CBO estimates that the federal budget deficit for 2010 will exceed $1.3 trillion—$71 billion below last year’s total and $27 billion lower than the amount that CBO projected in March 2010.
– This year’s deficit is expected to be the second largest shortfall in the past 65 years: At 9.1 percent of gross domestic product (GDP), it is exceeded only by last year’s deficit of 9.9 percent of GDP.
– CBO projects that the economy will grow by only 2.0 percent from the fourth quarter of 2010 to the fourth quarter of 2011; even with faster growth in subsequent years, the unemployment rate will not fall to around 5 percent until the end of 2014.