CBO: Deficit this year will be under $1T, first since '08
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.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Slow-moving, wintry storm packs punch in Plains, Midwest
- Police union stands by Chicago officer charged with murdering teen
- Investors buy shares in college students: Purdue University thinks it’s wave of future
- Police officer killed in Colorado Spring clinic rampage a co-pastor, figure skater
- Federal $1.1 trillion spending bill loaded with policy deals
- Colorado clinic shooting suspect talked of baby parts, police say
- Authorization for NSA dragnets of phone call data expires
- Prof proposes museum of corruption in New York capital
- Artists plan to rebuild Alaska art display damaged by tides
- Disability claim waits grow alongside swelling caseloads for judges
- Pot doctors in medical marijuana states push boundaries with marketing