For fiscal year 2012 (which ends on September 30), the federal budget deficit will total $1.1 trillion, CBO estimates, marking the fourth year in a row with a deficit of more than $1 trillion. That projection is down slightly from the $1.2 trillion deficit that CBO projected in March. At 7.3 percent of gross domestic product (GDP), this year’s deficit will be three-quarters as large as the deficit in 2009 when measured relative to the size of the economy. Federal debt held by the public will reach 73 percent of GDP by the end of this fiscal year—the highest level since 1950 and about twice the share that it measured at the end of 2007, before the financial crisis and recent recession. Continue reading “An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022”
January 4, 2013
We’ve received a number of questions in the past few days about the budgetary and economic impact of the significant budget legislation just enacted by the Congress. Here are some of the most common questions and our answers to them:
Does the Legislation Increase or Decrease Federal Budget Deficits?
That depends on what you compare the legislation with:
Relative to what would have occurred under the laws previously in effect, this legislation will increase budget deficits in coming years. Continue reading “The “Fiscal Cliff” Deal”