CBO projects $845B budget deficit for 2013
The growth numbers are rosier than those CBO projected in August, when the fiscal cliff loomed and CBO saw the economy contracting by percent in CBO has projected budget deficits. May 14, · The CBO projects a $ billion budget deficit for fiscal year , down more than $ billion from its February estimate and the smallest annual shortfall since It .
A robust increase in revenues projected over the next few years will help shrink deficits through But deficits are projected to rise later in the decade, partly because of pressures of an aging population and rising health care costs. Relative to the size of the economy, the deficit this year—at 4. However, budget shortfalls are projected to increase later in the coming decade, reaching 3. By comparison, the deficit averaged 3. During the next 10 years, both revenues and outlays are projected to be above their year averages as a percentage of GDP see figure below.
With such deficits, federal debt held by the public is projected to remain above 70 percent of GDP—far higher than the 39 percent average projecred over the past four decades.
As recently as the end offederal debt equaled 36 percent of GDP. Under current law, the debt is projected to decline from projecged 76 percent of GDP in to slightly below 71 percent in but then what is the projected budget deficit for 2013 start rising again; byif current laws remain in place, debt will equal 74 percent of GDP and continue to be on an upward path see figure below.
Such high and rising debt later in the coming decade would have serious negative consequences: When interest rates return to higher more typical levels, federal spending on interest payments would increase substantially.
Moreover, because federal borrowing reduces national saving, over time the capital stock would be smaller and total wages would be lower than they would be if the debt was reduced. In addition, lawmakers would have less flexibility than they would have if debt levels were lower to veficit tax and spending policy to respond to unexpected challenges. That reduction results mostly from lower projections of spending for Social Security, Medicare, Medicaid, and interest on the public debt.
Although CBO's projections of revenues, outlays, deficits, and debt over the period have not changed since they were issued in May, those amounts measured as a percentage of GDP are now lower as a result of BEA's revisions. Online Version Subsequent projections appear in Budget and Economic Outlook and Updates. Data Underlying Figures. Alternative Fiscal Scenario.
Effect of the Automatic Spending Reductions. Supplement to Budget Projections. Historical Budget Data. Revenue How to grow hazelnut trees from cuttings, by How to cure gallstones pain. Pell Grant Program. Student Loan Programs. Pension Benefit Guaranty Corporation. Social Security Disability Insurance. Social Security Trust Funds.
Child Nutrition Programs. Child Support Collections. Child Support Enforcement. Foster Care and Adoption Assistance. Supplemental Nutrition Assistance Program.
Supplemental Security Income. Whzt Assistance for Needy Families. Unemployment Compensation. Federal Programs That Guarantee Mortgages. Highway Trust Fund Accounts. The Budget and Economic Outlook: to February 4, May 14, February 5,
May 14, · If the current laws that govern federal taxes and spending do not change, the budget deficit will shrink this year to $ billion, CBO estimates, the smallest shortfall since Relative to the size of the economy, the deficit this year—at percent of gross domestic product (GDP)—will be less than half as large as the shortfall in , which was percent of GDP. Aug 07, · The federal government’s budget deficit was slightly more than $ billion in the first 10 months of fiscal year , CBO estimates, almost $ billion less than the shortfall recorded for the same period last year. Revenues have risen by about 14 percent, accounting for much of the decline in the deficit. Oct 22, · Bulletin — Projected POST Budget Deficit Frequently Asked Questions. Since the release of Bulletin Number , POST staff has received calls and emails seeking clarification of the spending reductions that will commence on January 1,
The United States federal budget is the budget to fund government operations for the fiscal year , which is October —September The original spending request was issued by President Barack Obama in February In addition, several temporary tax cuts were scheduled to expire at the beginning of the calendar year, including the and Bush tax cuts on income , capital gains , and estate tax , which had been extended in a tax deal , as well as a payroll tax cut that began as a result of the deal and had been most recently extended in an early tax deal.
The combination of sudden spending cuts and tax increases has led to concerns about significant negative effects on the economy in the wake of the weak recovery from the recession that began in The government was initially funded through a single temporary continuing resolution. Final funding for the government was enacted on March 26, as the Consolidated and Further Continuing Appropriations Act, , which contained funding bills for the Department of Defense and Department of Veterans Affairs , with a full-year continuing resolution for all other departments and agencies.
The Budget Control Act of was passed in August as a resolution to the debt-ceiling crisis. The fiscal year abbreviated as FY budget is the first to be affected by the second of two rounds of budget cuts specified in the act.
The first round of cuts has already been applied to the ten years beginning in FY On November 21, , the Joint Select Committee on Deficit Reduction announced that it did not reach a deal on the budget-cutting legislation, raising the possibility that the automatic cuts would be activated if the full Congress could not enact its own deficit reduction legislation by December 23, The supercommittee's lack of an agreement was attributed to the refusal of Republicans to consider any tax increases, combined with Democratic insistence on including these revenue increases such as the expiration of the Bush tax cuts , which under current law expire at the end of President Obama's February budget message to Congress addressed themes of economic crisis and response, an updated defense strategy, taxation fairness, income equality, fiscal responsibility, and investments in education and research to help the U.
He wrote: "The way to rebuild our economy and strengthen the middle class is to make sure that everyone in America gets a fair shot at success. Instead of lowering our standards and our sights, we need to win a race to the top for good jobs that pay well and offer security for the middle class.
To succeed and thrive in the global, high-tech economy, we need America to be a place with the highest-skilled, highest-educated workers; the most advanced transportation and communication networks; and the strongest commitment to research and technology in the world.
This Budget makes investments that can help America win this race, create good jobs, and lead in the world economy. Over the period, the budget essentially freezes defense and non-defense discretionary spending in dollar terms, such that these categories shrink relative to a growing economy, from 8.
Mandatory spending e. Net interest rises from 1. Revenues rise steadily during the period from On May 16, , the United States Senate voted on a page budget amendment billed as a summary of the nearly 2, pages in the Obama administration's budget proposal. The amendment was defeated by a unanimous 99—0 vote, which paralleled the House of Representatives having voted a similar rejection in March by a count of —0.
Those defeats of the amendments marked the second year in a row such summary bills met unanimous opposition. On July 31, , a tentative deal was announced to fund the government from October through March through a continuing resolution , with spending rates slightly higher than the FY levels.
The deal was reached because Republicans were eager to avoid a prolonged dispute that could threaten a government shutdown just before the upcoming general elections. On August 1, , the House and Senate passed competing bills on the extension of the Bush tax cuts. The passage of the bills was reported as being intended as political cover; progress on tax legislation was not expected until after the November elections.
The proposal was known as "Plan B", and was intended to force the Senate and the Obama administration to pass it and delay further negotiations until the following month, when Republicans were expected to use the reaching of the federal debt limit as leverage. However, the House vote on the plan was abruptly cancelled on December 20, after it became clear that the bill did not have enough support to pass, due to conservative members of the House who would not support any legislation that would raise taxes without also cutting spending.
The bill passed the Senate 62—32, but faced uncertain prospects in the House. A bill increasing the borrowing authority of FEMA was enacted on January 6, , and the appropriations bill was enacted on January 29, At around 2 a. All these changes would all be made permanent.
EST on January 1, The spending bill for the remainder of the fiscal year, the Consolidated and Further Continuing Appropriations Act, , was passed by the Senate 73—26 on March 20, ,  by the House the following day in a vote, and signed by President Obama on March 26, Defense spending in remained high by historical standards, adjusted for inflation. The Budget Control Act also specifies automatic cuts of 7. These entitlement programs were protected from cuts in return for the absence of new revenues in the Budget Control Act.
National Laboratories run by the Department of Energy. It is anticipated that this could cause federal grant acceptance levels to fall into the single digits, a consequence which has been called catastrophic for academic institutions by Michael Lubell of the American Physical Society. The cuts could also endanger politically controversial research such as climate change research programs in NASA and National Oceanic and Atmospheric Administration. Annual rates of increase in major revenue categories budgeted for the period were:.
Changes in revenues primarily represent a return to the long-run average. Defense and non-defense discretionary expenses are essentially frozen in real dollar terms for the period, growing at or below the rate of inflation.
Non-defense discretionary spending rose at an annual rate of 6. Mandatory spending is mainly driven by demographic changes i. Interest costs represent a return to more typical interest rates as the economy recovers along with the growing public debt. From Wikipedia, the free encyclopedia. Main article: United States federal budget. The committee failed to agree on any deficit reduction plan, triggering mandatory across-the-board cuts. Government Publishing Office. Retrieved March 20, United States Office of Management and Budget.
Retrieved March 14, Narrows to 5-Year Low on Record Revenue". Bloomberg News. October 30, Retrieved October 30, Retrieved October 8, Office of Management and Budget. Retrieved February 13, The Wall Street Journal. Retrieved December 9, Retrieved December 14, Los Angeles Times. The New York Times. Retrieved December 7, Washington Times. Retrieved May 16, Retrieved August 1, Retrieved September 21, United States Senate.
Retrieved October 1, Library of Congress. Retrieved January 1, Clerk of the United States House of Representatives. The Washington Examiner. Retrieved March 23, The Washington Post. American Association for the Advancement of Science. Archived from the original on March 23, Retrieved February 3, Washington Wire.
Bibcode : Natur. PMID Stand With Science. New York Times. Retrieved April 22, United States federal budgets. Categories : United States federal budgets in American politics government budgets. Hidden categories: Use mdy dates from April Namespaces Article Talk. Views Read Edit View history. Help Learn to edit Community portal Recent changes Upload file. Download as PDF Printable version. Add links. February 13, . September 28, Pub. Individual income tax.
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