Director’s Statement on The Budget and Economic Outlook: 2022 to 2032
This afternoon I briefed the press about the Congressional Budget Office’s new report, The Budget and Economic Outlook: 2022 to 2032. I delivered the following remarks.
Thank you for joining me to talk about the federal budget and the economy. In CBO’s latest projections, released today, the federal budget deficit in 2022 is $1.0 trillion. That shortfall would represent a substantial reduction from deficits in the past two years as federal spending in response to the coronavirus pandemic wanes and the current economic expansion continues.
In our projections, which reflect the assumption that current laws governing federal taxes and spending generally remain unchanged, federal deficits nonetheless remain large by historical standards and generally increase over the next decade. From 2023 to 2032, the annual shortfall averages $1.6 trillion. The projected deficit of more than $2 trillion in 2032 would equal 6.1 percent of gross…
