(Washington) The United States will run its second-largest budget deficit after World War II this year, as federal debt continues to rise in GDP, according to a congressional budget office estimate released Thursday.
The budget deficit will be less than $ 2.3 trillion this year, $ 900 billion less than by 2020, while the national debt will rise to $ 22.5 trillion, or 102.3 percent of GDP, the independent said.
These new forecasts for the next ten years take into account the baronic budget spending that the federal government spent last year to keep the U.S. economy afloat in the wake of the shock of the COVID-19 epidemic.
However, the $ 1.9 trillion bailout that the Biden administration wants to get Congress to approve soon is not among them.
The Congressional Budget Office estimates that the deficit will gradually decrease from $ 905 billion by 2024 to nearly $ 1900 billion by 2031.
Debt to GDP ratio is currently at 107.2%, its highest level.
Republicans and some Democrats in Congress have expressed concern about the size of the new economic aid program proposed by the Democratic president, which could be revised downwards.
However, the Congressional Budget Office estimates that previous stimulus packages to combat the epidemic have certainly spurred spending, but also had positive effects on the economy.
According to him, the $ 900 billion plan approved at the end of last December has improved the economic outlook, increasing real GDP to 1.8% in 2021 and 1.1% in 2020.