| USWorld

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

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

Email Newsletters

Sign up for one of our email newsletters.

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. Slow-moving, wintry storm packs punch in Plains, Midwest
  2. Police union stands by Chicago officer charged with murdering teen
  3. Investors buy shares in college students: Purdue University thinks it’s wave of future
  4. Police officer killed in Colorado Spring clinic rampage a co-pastor, figure skater
  5. Federal $1.1 trillion spending bill loaded with policy deals
  6. Colorado clinic shooting suspect talked of baby parts, police say
  7. Authorization for NSA dragnets of phone call data expires
  8. Prof proposes museum of corruption in New York capital
  9. Artists plan to rebuild Alaska art display damaged by tides
  10. Disability claim waits grow alongside swelling caseloads for judges
  11. Pot doctors in medical marijuana states push boundaries with marketing