Obama’s Budget Deficit Could be Trillions of Dollars Higher Than CBO’s Outlook, Budget Watchdog Group Says
- Christopher Neefus - CNSNews.com
- Feb 18, 2010
(CNSNews.com) – Republicans railed against the Obama administration last month when the Congressional Budget Office (CBO) predicted a $6 trillion dollar deficit over the next decade. But an analysis by the Committee for a Responsible Federal Budget (CRFB), a taxpayer watchdog group, of President Obama’s proposed budget baseline for fiscal year 2011 points out it actually could spur more like $8.5 trillion in deficits.
Under the president’s budget proposal submitted to Congress, deficits would shrink slowly over much of the next decade, and then would start to grow again.
The deficit peaks at $1.56 trillion in FY 2010, constituting 10.6 percent of GDP); then is projected to drop to $1.27 trillion -- or 8.3 percent of GDP -- in FY 2011; $828 billion (5.1 percent of GDP) in FY 2012 and $727 billion (or 4.2 percent of GDP) in FY 2013. In FY 2016, the deficit begins to grow again in real terms, and as a share of GDP in FY 2019. By FY 2020, the deficit would top $1 trillion.
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