The federal budget deficit is projected to reach $19 trillion in 2024, as reported by the nonpartisan Congressional Budget Office (CBO).
The CBO’s estimate of the deficit increase from its February projections is about $400 billion, attributed to various factors such as foreign military aid, student loan actions, bank failures recovery, and higher spending on Medicaid and discretionary spending.
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The big picture: The cumulative deficit projected from 2025 to 2034 is expected to be $22.1 trillion, which is an increase from the previous projection.
- Deficits over the next decade are stated to be about 70 percent larger than the historical average in relation to economic output.
- Federal outlays are predicted to reach 24.2 percent of GDP in 2024 and 24.9 percent in 2034, with revenues at 17.2 percent of GDP in 2024.
- Debt held by the public is forecasted to rise from 99 percent of GDP in 2024 to 122 percent in 2034, the highest in history.
What they’re saying: Republicans and Democrats are weaponizing the CBO’s latest projections as the nation’s debt has run up to $34 trillion.
- “This 4-month, $400 billion increase in projected deficits marks the third highest yearly deficit increase in American history, equal to 6.7 percent of our GDP,” House Budget Committee Chair Jodey Arrington (R-Texas) said in a statement.
- White House Press Secretary Karine Jean-Pierre called on Congress to pass President Biden’s budget blueprint in response to the projections.
