CBO Predicts: 2011 Budget Deficit to Hit Record $1.5 Trillion
Posted on January 26, 2011
Washington (AP) — New budget estimates released Wednesday predict the government’s deficit will hit almost $1.5 trillion this year, a new record.
The daunting numbers mean that the government will have to borrow 40 cents for every dollar it spends.
The new Congressional Budget Office estimates will add fuel to a raging debate over cutting spending and looming legislation that’s required to allow the government to borrow more money as the national debt nears the $14.3 trillion cap set by law. Republicans controlling the House say there‘s no way they’ll raise the limit without significant cuts in spending, starting with a government funding bill that will advance next month.
The CBO analysis predicts the economy will grow by 3.1 percent this year, but that joblessness will remain above 9 percent this year. Dauntingly for President Obama, the nonpartisan agency estimates a nationwide unemployment rate of 8.2 percent on Election Day in 2012. Read More
