TribLIVE

| USWorld


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

CBO: Deficit this year will be under $1T, first since '08

Daily Photo Galleries

By The Washington Post
Tuesday, Feb. 5, 2013, 7:36 p.m.
 

WASHINGTON — For the first time in five years, the federal budget deficit will come in under $1 trillion in 2013, congressional budget analysts said on Tuesday, with the gap between taxes and spending to fall to $845 billion in the fiscal year that ends in September.

Attributed in large part to tax increases adopted on Jan. 1 and deep automatic spending cuts set to hit in March, new projections from the nonpartisan Congressional Budget Office show the deficit continuing to plummet in 2014 and 2015, and falling to less than 3 percent of the overall economy for much of the decade.

The national debt would stabilize to around 77 percent of the economy after years of rampant borrowing to fight the worst recession since the 1930s, the CBO said. Deficits, though, will begin climbing again as a percentage of the economy by 2019, the CBO said, as an aging population drives spending on Social Security, Medicare and Medicaid ever higher.

“The CBO outlook makes it clear that, while we still have more work to do, the $2.4 trillion in deficit reduction we enacted over the last two years has moved us closer to stabilizing the debt and responsibly scaling back the deficit,” said Senate Budget Committee Chairman Patty Murray, D-Wash.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Nation

  1. WVU, Va. coal company at odds over research papers
  2. Reports: Actor Ford seriously injured in small-plane crash in L.A.
  3. Carnegie Mellon expert to school Congress on security
  4. Raw milk has little evidence of antibiotics, FDA survey finds
  5. Weapon supply vulnerable to hackers, Pentagon official warns
  6. Bullet-ridden dog tied to tracks saved in Florida
  7. Modified endoscope linked to deadly ‘superbug’ outbreak lacked FDA approval
  8. Feds weighed national standards but let North Dakota set regulations for oil trains’ safety
  9. Lawmakers move to require schools to teach cursive amid Common Core wrangling
  10. Lawmakers press Veterans Affairs for improved access to rural health care
  11. Appeals court tosses gag order in ex-coal company CEO’s case