CBO Now Says Deficit Will Be Over $400 Billion

Congressional Budget Office (CBO)
Monthly Budget Report
June 9, 2003

"CBO now projects that the federal government is likely to end fiscal year 2003 with a deficit of more than $400 billion, or close to 4 percent of gross domestic product. The deterioration in the short-term budget outlook stems from continued weakness in revenue collections and from enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003, which will add an estimated $61 billion to this year’s deficit in the form of tax cuts, refundable credits, and aid to states. The recent extension of unemployment benefits will boost outlays by another $3 billion this year. For the first eight months of 2003, the government ran a deficit of $291 billion, CBO estimates, about twice the shortfall it incurred in the same period last year."

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Links:
CBO Monthly Budget Report (June 9, 2003)
Centrists.Org No-BS Long-Term Budget Baseline (updated 5/24/2003)

Posted by Jeff Lemieux at June 10, 2003 05:51 PM