New preliminary analysis from the Congressional Budget Office (CBO) released on Friday projected that President Barack Obama’s budget would lead to annual deficits averaging nearly $1 trillion for the next decade. These estimates are larger than the budget shortfalls expected by the White House. According to CBO, annual deficits under Obama’s budget plan would be about $976 billion from 2011 through 2020, while the Obama administration estimated that its budget would result in an average annual budget shortfall of $853 billion for the next 10 years. The reason for the discrepancy is that the Obama administration’s estimate expects more tax revenue.
The CBO and the White House agree on the amount of government spending over the next 10 years — about $45 trillion — but CBO expects Obama’s policies laid out in his budget will bring in $35.5 trillion in tax receipts, while the White House expects $37.3 trillion. CBO expects less tax revenue due to slowed economic growth over the next decade.
President Obama recently created a bipartisan National Commission on Fiscal Responsibility and Reform consisting of lawmakers and experts who are tasked with making recommendations to Congress by the end of the year to balance the by 2015. Democratic congressional leaders have pledged to hold votes on the commission’s recommendations after the mid-term elections.
Tags: budget, Congress, president, Public Policy