U.S. fiscal deficit forecast revised up to $486 billion in 2015Staff writer ▼ | March 10, 2015
The Congressional Budget Office (CBO) revised upwardly its forecast for U.S. federal budget deficit in 2015 fiscal year, but the forecast for long-term deficits was lowered, compared with its January forecasts.
United States The Congressional Budget Office:
The deficit to GDP (gross domestic product) ratio for 2015 will be 2.7 percent, slightly higher than its January forecast of 2.6 percent.
However, thanks to the expectations of lower health insurance spending and increased revenues from income and payroll taxes, the CBO lowered the projected deficits for the 2016-2025 period by 431 billion from its January forecast to a total of $7.2 trillion.
The CBO expected the federal debt held by the public would amount to around 73 percent of GDP over the next several years, more than twice what it was at the end of 2007. The non-partisan agency warned such high and rising debt would have serious negative consequences for the country, such as higher spending costs and rising fiscal risk. ■