![]() In addition, outlays related to the government’s transactions with Fannie Mae and Freddie Mac and for higher education programs will be greater than the amounts recorded last year. Federal spending for the major health care programs accounts for a little more than half of that increase: Outlays for Medicare (net of premiums and other offsetting receipts), Medicaid, the Children’s Health Insurance Program, and subsidies for health insurance purchased through exchanges and related spending are expected to be $110 billion (12 percent) higher this year than they were in 2014. That increase is the net result of a nearly 10 percent jump in mandatory spending, offset by lower net interest payments and discretionary outlays.ĬBO anticipates that mandatory outlays will be $199 billion higher in 2015 than they were last year. Debt held by the public will remain around 74 percent of GDP by the end of 2015, CBO estimates-slightly less than the ratio last year but higher than in any other year since 1950.įederal outlays are projected to rise by 5 percent this year, to $3.7 trillion, or 20.6 percent of GDP. The expected shortfall for 2015 would constitute the smallest since 2007, and at 2.4 percent of gross domestic product, it would be below the average deficit (relative to the size of the economy) over the past 50 years. The Budget Deficit for 2015 Will Be Smaller Than Last Year’sĪt $426 billion, CBO estimates, the 2015 deficit will be $59 billion less than the deficit last year (which was $485 billion) and $60 billion less than CBO estimated in March (see table below). ![]() The pace of growth over the next few years is expected to reduce the quantity of underused resources, or “slack,” in the economy, lowering the unemployment rate and putting upward pressure on compensation as well as on inflation and interest rates. Over the next 10 years, however, the budget outlook remains much the same as CBO described earlier this year: If current laws generally remain unchanged, within a few years the deficit will begin to rise again relative to GDP, and by 2025, debt held by the public will be higher relative to the size of the economy than it is now.ĬBO’s economic forecast, which serves as the basis for its budget projections, anticipates that the economy will expand modestly this year, at a solid pace in calendar years 20, and at a more moderate pace in subsequent years. According to the Congressional Budget Office’s estimates, this year’s deficit will be noticeably smaller than what the agency projected in March, and fiscal year 2015 will mark the sixth consecutive year in which the deficit has declined as a percentage of gross domestic product (GDP) since it peaked in 2009.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |