AP

Budget office expects $2.3T deficit before Biden relief plan

Feb 12, 2021, 6:31 AM

Martin Gold, a visiting scholar with the Orrin G. Hatch Foundation, says the Filibuster is critical...

Martin Gold, a visiting scholar with the Orrin G. Hatch Foundation, says the Filibuster is critical if the nation wants to maintain bipartisanship and compromise, (AP Photo/Carolyn Kaster, File)

(AP Photo/Carolyn Kaster, File)

BALTIMORE (AP) — The Congressional Budget Office says the federal government is on track for a $2.3 trillion deficit this year, down roughly $900 billion from last year when the coronavirus pandemic led Congress to provide historic amounts of financial aid.

Stronger economic growth has helped to reduce the anticipated shortfall for this year. Still, the deficit could soon be revised upward if President Joe Biden’s $1.9 trillion coronavirus relief package becomes law. The additional aid — coming after roughly $4 trillion was approved last year — would add more red ink once enacted, but isn’t included in Thursday’s CBO projections.

Excluding the Biden plan, this year’s deficit will equal 10.3% of gross domestic product, which is a measure of the total value of the economy’s goods and services. The past two years have the highest deficits relative to GDP since 1945.

The CBO expects the budget deficit to fall to about $1 trillion in 2022 as the economy heals and there is less need for government spending. Deficits are supposed to average 4.4% of GDP from 2022 to 2031.

Several decades of deficit spending has meant that the total federal debt held by the public is slightly larger than GDP. That figure is projected to rise to 107% of GDP by 2031 as spending on Medicare and Social Security increases.

Shai Akabas, economic policy director at the Bipartisan Policy Center, said that additional coronavirus relief should be a priority, cautioning that the country still needs to find a way to put the deficit on a safer path.

“When it comes to recovery, the country faces many challenges that are likely to require an infusion of federal resources,” Akbas said. “But it is crucial that lawmakers balance any new investment with a commitment to stabilizing the precarious fiscal picture that CBO highlighted today. In this realm, ‘wait and see’ is not a strategy — it is a fiscal risk.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

AP

close up of a peleton bike pictured, a recall has been issued for some...

Associated Press

Peloton recalling more than 2M exercise bikes because the seat post assembly can break during use

The recall includes approximately 2.2 million of the Peloton Bikes Model PL01. The bikes were sold from January 2018 through May 2023 for about $1,400.

11 months ago

Immigration Asylum Family Reunification Explainer....

JULIE WATSON Associated Press

US will let in at least 100,000 Latin Americans to reunite with families

President Joe Biden's administration has promised to offer more legal options for Latin American migrants to come to the United States to be reunited with their families.

11 months ago

two border patrol agents pictured, agents are dealing with a surge as title 42 reaches its expirati...

Associated Press

Title 42 has ended. Here’s what it did, and how US immigration policy is changing

The end of Title 42's use has raised questions about what will happen with migration preparing for an increase in migrants.

11 months ago

Rumman Chowdhury is pictured, she is the coordinator for the mass AI hacking exercise...

Associated Press

Hackers aim to find flaws in AI – with White House help

No sooner did ChatGPT get unleashed than hackers started “jailbreaking” the artificial intelligence chatbot – trying to override its safeguards so it could blurt out something unhinged or obscene. But now its maker, OpenAI, and other major AI providers such as Google and Microsoft, are coordinating with the Biden administration to let thousands of hackers […]

11 months ago

Parents of Ema Kobiljski, 13, mourn during the funeral procession at the central cemetery in Belgra...

JOVANA GEC Associated Press

Burials held in Serbia for some victims of mass shootings

Funerals are taking place in Serbia for some of the victims of two mass shootings that happened in just two days, leaving 17 people dead and 21 wounded, many of them children.

11 months ago

interest rate...

DAVID McHUGH AP Business Writer

Europe’s inflation inches up ahead of interest rate decision

Europe's painful inflation has inched higher, extending the squeeze on households and keeping pressure on the European Central Bank to unleash what could be another large interest rate increase.

11 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

Budget office expects $2.3T deficit before Biden relief plan