CBO Cut Budget Deficit Estimate

In February, the Congressional Budget Office lowered their estimate for this year’s Federal budget deficit to $514 billion. Today, they lowered it to $492 billion. Furthermore, the CBO sees next year’s deficit coming in at $469 billion. As a percent of GDP, the deficit is expected to 2.8% for this year and 2.6% for next year.

The CBO projects federal spending next year of 20.4% of GDP which is lower than every fiscal year from 1980 to 1993.

Here’s an update to the chart of “My Simple Rule for Government Financing.”

(Unemployment Rate x 2) – 10 = Budget Deficit / GDP

Posted by on April 14th, 2014 at 11:15 am


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