Official reports from the Congressional Budget Office (CBO)

CBO Raises 2024 US Budget Deficit Estimate to $1.915 Trillion, Up $408 Billion; GDP Growth at 2.0%

Jun 18, 2024, 06:03 PM

The Congressional Budget Office (CBO) has significantly increased its estimate for the U.S. federal budget deficit for fiscal year 2024. The new forecast projects a deficit of $1.915 trillion, up from the previous estimate of $1.5 trillion made in February. This revision represents an increase of $408 billion. The CBO attributes the rise to higher outlays for student loans, FDIC bank resolutions, aid to Ukraine and Israel, and Medicaid. Additionally, the CBO has updated its economic projections, forecasting real GDP growth of 2.0% for 2024, up from the 1.5% estimated in February. The CBO also projects the average real GDP growth for 2025-2034 at 1.8%, slightly lower than the 2.0% forecasted in February. The deficit-to-GDP ratio is now expected to be 6.7%, up from 5.3%.