Report: US Deficit To Continue Decline
The Congressional Budget Office projects that America's budget deficit will fall to $468B this year, down from $483B last year and the smallest gap since President Obama took office in January 2009. The deficit surpassed $1T throughout Obama's first term. And the report, released today, arrives at a time when newly empowered Republicans with a bicameral majority aspire to halve the deficit in 10 years through tax and safety net cuts.
Still, while the CBO sees the deficit level remaining flat in 2016, it will increase in the following years as aging Baby Boomers requires more care and the national debt demands intervention. And come 2018, the forecast warns that the deficit will exceed the five-decade average of 2.4% of GDP, hitting 4%, or $1.1T, in 2025, numbers many economists consider untenable.
