The US government will run a federal budget deficit of at least $1.5 trillion in Fiscal Year 2023 and it may grow even bigger because of a decrease in tax revenues, the Congressional Budget Office (CBO) said in a report on Friday
WASHINGTON (Pakistan Point News / Sputnik - 12th May, 2023) The US government will run a Federal budget deficit of at least $1.5 trillion in Fiscal Year 2023 and it may grow even bigger because of a decrease in tax revenues, the Congressional Budget Office (CBO) said in a report on Friday.
"CBO's updated projections show a federal budget deficit of $1.5 trillion for 2023," the report said. "That estimate is subject to considerable uncertainty, though, in part because of a recent shortfall in tax revenues."
In the agency's updated projections, annual deficits will nearly double over the next decade, reaching $2.7 trillion in 2033, with an accumulated deficit over the 2024-2033 period of $20.2 trillion, the report said.
"Measured in relation to the size of the economy, deficits grow from 6% of gross domestic product (GDP) next year to 6.9% in 2033 - well above their 50-year average of 3.6% of GDP," the CBO said.
The updated projections for the FY 2023 budget were finalized in late March. However, since then the CBO has learned that revenue collections through April were less than the agency expected, which could affect total revenues for fiscal year 2023, which ends on September 30, 2023, the report noted.
