CBO Trims 2011 Deficit Expectation from $1.4T to $1.3T
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The WSJ reports Wednesday the Congressional Budget Office projected a deficit of almost $1.3 trillion for fiscal 2011, a $100 billion improvement from the $1.4 trillion estimate in an April analysis.
The deficit was lowered due to higher than previously forecast revenue from individual income taxes.
Based on a year-long measurement, analysts predict the U.S. economy will grow 2.3 percent in 2011 and 2.7 percent in 2012. This will in turn help drive the jobless rate down to 8.9 percent by the end of 2011 and to 8.5 percent by the end of 2012.
Some analysts noted the debt deal, which was reached earlier this month by Congress, "will lead to significant fiscal restraint in 2013."
A $1.284 trillion budget deficit this year will total 8.5 percent of the U.S.'s total GDP. By the end of 2011, the public will hold 67 percent of the U.S.'s gross domestic product in debt, the highest amount since 1950.
The deficit was lowered due to higher than previously forecast revenue from individual income taxes.
Based on a year-long measurement, analysts predict the U.S. economy will grow 2.3 percent in 2011 and 2.7 percent in 2012. This will in turn help drive the jobless rate down to 8.9 percent by the end of 2011 and to 8.5 percent by the end of 2012.
Some analysts noted the debt deal, which was reached earlier this month by Congress, "will lead to significant fiscal restraint in 2013."
A $1.284 trillion budget deficit this year will total 8.5 percent of the U.S.'s total GDP. By the end of 2011, the public will hold 67 percent of the U.S.'s gross domestic product in debt, the highest amount since 1950.
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