The estimate, which precedes the US Treasury’s year-end budget report later this month, shows a deficit that is 11 percent higher than the $1.7 trillion gap in fiscal year 2023 but slightly lower than the $1.9 trillion deficit estimated in June from the CBO. Congress.
The US Vice President said Kamla Harris She will be more fiscally responsible as president than her Republican rival Donald TrumpShe pledged to fully offset the new spending with tax increases in other areas.
A financial think tank, the Committee for a Responsible Federal Budget, estimated Monday that Trump’s plans would accumulate $7.5 trillion in new debt, more than double the $3.5 trillion proposed by Harris.
But after a significant decline in the US deficit in 2021 and 2022 as the economy recovered and spending on the Covid-19 rescue plan faded, the deficit has worsened sharply in the past two years, and the Congressional Budget Office estimates that the “underlying” deficit, which assumes no changes in current laws. It will grow by $22 trillion over the next ten years.
The Congressional Budget Office estimated that total revenues rose 11 percent to $4.918 trillion, supported by higher individual and corporate income taxes, as economic growth remained strong.
The largest growth in spending came from interest on public debt, which rose 34 percent to $950 billion, while spending on Medicare, Social Security and the military also increased.
Deficit comparisons were affected by the cancellation of $330 billion in 2023 costs associated with President Joe Biden’s student loan forgiveness plan that was struck down by the Supreme Court.
Had it not been for canceling this plan, last year’s deficit would have exceeded two trillion dollars.
