Federal budget deficit forecast of about 2 trillion dollars in the United States

, the Congressional Budget Office (CBO) announced that the federal budget deficit is expected to reach $1.9 trillion this year, while government spending continues to rise.

Accordingly, the estimate for the gap between annual revenue and spending is about $400 billion higher than the forecast published in February. The figure was included in the nonpartisan budget accountants’ latest update for the 2024-2034 budget and economic outlook.

According to the report, the administration, The 27 percent increase was attributed to several key factors, including: foreign military aid, actions taken on student loans by the Biden administration, less-than-expected improvement by the Federal Deposit Insurance Corporation in paying out bank failures over the past two years, spending

Furthermore, it is predicted that the budget deficit will double from From 2025 to 2034, it will reach 1.22 trillion dollars, which is 10% more than the forecast made in February, which was expected to increase by 1.2 trillion dollars.

CBO stated that the biggest factor behind this double increase is the combination of the recent executive order with CBO policy, which added $1.6 trillion to the projected deficit. The legislation includes essential supplemental appropriations that provide $95 billion in aid to Ukraine, Israel and allies in the Asia-Pacific region.

Meanwhile, budget analysts believe that the budget deficit in relation to economic production in the next 10 years is about 70% higher than its historical average.

Additionally, while interest costs and programs such as Medicare and Social Security continue to rise, CBO projects federal spending to rise to 2.24 percent of GDP in 2024 and 24.9 percent of GDP in 2024. It will reach in 2034.

CBO also projected that income will reach a total figure of 2.17 percent of GDP in 2024 and in 2027, to increase by 0.8 percent, while parts of the tax law signed by Donald Trump in 2017 are expiring.

Meanwhile, White House spokeswoman Karin Jean-Pierre sees the report as more evidence of the need for Congress to approve the Biden administration’s budget, which includes proposals aimed at raising taxes on the wealthy instead of increasing the debt by $5 trillion. Tax cuts are more in the Trump era.

Some time ago Bloomberg news network questioned the projections of the Congressional Budget Office in a report. The United States warned about the debt of the country’s government, the ratio of this debt to the GDP of the United States until the year 2034 123 percent will increase .

Based on According to Bloomberg, the 116 percent figure is even higher than the level of US government debt during World War II, but the real outlook is probably even worse.

According to this news network, the projections of the Congressional Budget Office, which were released at the beginning of this year, are based on tax revenue. Even defense spending and bank interest rates are based on optimistic assumptions.

The Biden administration says that the country’s budget, of which the increase in taxes on American companies and the wealthy is an important part, will lead to financial stability and appropriate debt servicing costs.

« “I believe we need to reduce deficits and stay on a fiscally sustainable path,” Treasury Secretary Janet Yellen told lawmakers in February.

Republicans, who control the US House of Representatives, believe that drastic spending cuts should be implemented. to reduce the severe budget deficit of the government of this country; Without specifying exactly what they are cutting from costs.

Democrats, who hold the majority in the Senate, have also said that lower spending will undermine “debt sustainability” and that interest rates and tax revenues will be key factors.

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