CBO: Deficit to Be $81 Billion Less than Last Year
Today, the non-partisan Congressional Budget Office (CBO) released its updated baseline budget projections for fiscal years 2005 through 2015. As expected, the projected deficit for fiscal year 2005 is significantly lower than the budget deficit recorded for fiscal year 2004.
According to CBO:
*The fiscal year 2005 budget deficit is projected to be $331 billion, or $81 billion less than the fiscal year 2004 deficit. This figure is very close to the Administration’s estimate of $333 billion.
*Relative to the size of the economy, the fiscal year 2005 deficit is projected to decline to 2.7% of Gross Domestic Product (GDP), a significant decrease from 3.6% of GDP in 2004.
*Federal revenues in fiscal year 2005 are expected to be roughly 14% higher than last year. Most of that growth is being driven by increases in individual and corporate income tax receipts.
*The baseline projections reflect current policies; CBO does not make any assumptions about future changes to current law. For this reason, the projections for fiscal years 2006 and beyond do not reflect the budgetary effects of items that Congress is expected to address, such as reforming the alternative minimum tax (AMT) or extending expiring tax provisions.
A full copy of CBO’s report can be found at http://www.cbo.gov/ftpdocs/66xx/doc6609/08-15-OutlookUpdate.pdf
According to CBO:
*The fiscal year 2005 budget deficit is projected to be $331 billion, or $81 billion less than the fiscal year 2004 deficit. This figure is very close to the Administration’s estimate of $333 billion.
*Relative to the size of the economy, the fiscal year 2005 deficit is projected to decline to 2.7% of Gross Domestic Product (GDP), a significant decrease from 3.6% of GDP in 2004.
*Federal revenues in fiscal year 2005 are expected to be roughly 14% higher than last year. Most of that growth is being driven by increases in individual and corporate income tax receipts.
*The baseline projections reflect current policies; CBO does not make any assumptions about future changes to current law. For this reason, the projections for fiscal years 2006 and beyond do not reflect the budgetary effects of items that Congress is expected to address, such as reforming the alternative minimum tax (AMT) or extending expiring tax provisions.
A full copy of CBO’s report can be found at http://www.cbo.gov/ftpdocs/66xx/doc6609/08-15-OutlookUpdate.pdf
