The Deficit Picture Darkens

CBO projects bigger yearly shortfalls and the worst debt-to-GDP ratio since WWII.

Graphic by Bloomberg Businessweek, source: Congressional Budget Office's June update to budget outlook.

The Congressional Budget Office’s June budget projections are alarming. In each fiscal year through 2027, the CBO revised higher shortfalls it projected  in January as revenue from economic growth is outpaced by spending tied to federal benefits, including retirement and health-care programs, and increased interest payments on the federal debt. As a result of growing yearly shortfalls, projected to top $1 trillion in 2022, debt held by the public as a percentage of U.S. gross domestic product will rise to 91 percent in 2027. That’s the largest share since 1947 and twice the average over the last 50 years.  projections higher 

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