CBO Raises 2024 US Budget Deficit Estimate to $1.915 Trillion, a 27% Increase

Jun 18, 2024, 06:10 PM

The Congressional Budget Office (CBO) has significantly revised its estimate for the U.S. federal budget deficit for fiscal year 2024, increasing it to $1.915 trillion from the previous estimate of $1.5 trillion. This 27% increase, amounting to $408 billion, is attributed to higher outlays for student loans, FDIC bank resolutions, aid to Ukraine and Israel, and Medicaid. In May 2024, the government paid $103 billion to service interest on the debt. The CBO also projects that the national debt will reach over $50 trillion by 2034, driven by rising defense costs and safety net spending. Additionally, the CBO forecasts real GDP growth for 2024 at 2.0%, up from the previous estimate of 1.5% in February.