Saturday, September 13, 2025

Latest

CBO Forecasts Lower Budget Deficit in 2021 – But Calculations Exclude Biden’s Proposed $1.9 Trillion Stimulus

The latest economic outlook published by the Congressional Budget Office calculates that the US federal budget deficit is projected to reach $2.3 trillion, forcing debt levels to exceed 102% of GDP by the end of 2021. However, by 2031, the outlook projects that debt levels would equal 107% of the country’s GDP— the highest on record.

However, what is a new revelation compared to the CBO’s previous forecast, is that the current year’s deficit is expected to fall by almost $900 billion compared to the shortfall recorded in 2020, when the deficit ballooned to a whopping $3.1 trillion.

However, in the current calculations, the CBO did not take into account the federal government’s prospective $1.9 trillion stimulus package. In addition, the CBO is obligated to establish its base-line scenario under the assumption that present laws governing spending and revenues will remain relatively the same, and that discretionary funding in the future will be equivalent to current spending, with adjustments for inflation. This time though, the “CBO deviated from those standard procedures when constructing its current base-line for discretionary spending.”

According to the CBO, the unprecedented nature and size of the emergency stimulus in response to the Covid-19 pandemic did not garner the agency to extrapolate the $184 billion in discretionary budget spending made available so far in 2021. This means that not only did the CBO not take into account President Joe Biden’s stimulus, but it also concluded that Congress would spend less that it has been authorized to spend— which of course is nonsense.

The CBO’s current debt projections are certainly expected to enliven the ongoing debate regarding Biden’s anticipated stimulus package— especially among Republicans, who have been arguing that the country faces an unfeasible debt burden after spending over $4 trillion on the pandemic thus far. However, regardless if whether or not the latest stimulus bill will pass— it likely will, it will just be a matter of what size— the CBO admits that after 2031 anything can happen: “By the end of the period, both primary deficits (which exclude net outlays for interest) and interest outlays are rising.

Information for this briefing was found via the CBO. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Canada’s Deficit Balloons To Record-Breaking $148.6 Billion In July With More Fiscal Spending Underway

Following Prime Minister’s Justin Trudeau’s promises of even more federal spending to alleviate the financial...

Monday, September 28, 2020, 12:33:00 PM

Washington State Scammed Out of Million of Dollars by Nigerian Fraudsters

Probably all of us at some point or another have received the infamous email from...

Sunday, May 24, 2020, 04:49:00 PM

Nothing Complicated, Everyone Just Believes It’s The End Of The World

That sure didn’t take long! We wrote on Monday that the gold chart had broken...

Wednesday, March 25, 2020, 08:38:39 AM

US Student Debt Levels Increased by more than 100% in Last Decade

The coronavirus pandemic has certainly made 2020 a year of revelational statistics, with soaring unemployment...

Tuesday, December 22, 2020, 04:12:40 PM

US Economists Call on Policymakers to Extend Cash Payments

As millions of Americans found themselves without a job following the onset of the coronavirus...

Wednesday, July 8, 2020, 04:39:00 PM