WASHINGTON (Pakistan Point News / Sputnik - 07th April, 2021) The United States' deficits will increase by $2.8 trillion over the next ten years because of revenues lost in the novel coronavirus pandemic and the relief packages passed by Congress, the Congressional Budget Office (CBO) said in a report on Tuesday.
"According to CBO's estimates, the effects on revenues and mandatory spending of laws enacted during the second session of the 116th Congress will increase budget deficits in fiscal year 2020 and cumulatively over the 2020-2030 period," the report said.
The CBO report estimates the CARES Act and the 2021 Consolidated Appropriations Act will add about $2.8 trillion to the total deficit by 2030 due to the $634 billion reduction in US revenues and a $2.2 trillion increase in mandatory spending.
For the first five months of fiscal year 2021, the Federal budget deficit reached $1.43 billion.
In early March, the CBO said the US government's debt held by the public is projected to grow to more than 202 percent of annual Gross Domestic Product (GDP) over the next 30 years to 2051.
A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the US Dollar, making it more costly to finance public and private activity in international markets.
