January 31, 2012
GET DEFENSE IN HALF AND YOU GET TOO LARGE A SURPLUS:
THE BUDGET AND ECONOMIC OUTLOOK: FISCAL YEARS 2012 TO 2022 (Congressional Budget Office, JANUARY 2012)
Posted by orrinj at January 31, 2012 6:28 PMCBO projects a $1.1 trillion federal budget deficit for fiscal year 2012 if current laws remain unchanged. Measured as a share of the nation's output (gross domestic product, or GDP), that shortfall of 7.0 percent is nearly 2 percentage points below the deficit recorded in 2011, but still higher than any deficit between 1947 and 2008. Over the next few years, projected deficits in CBO's baseline decline markedly, dropping to under $200 billion and averaging 1.5 percent of GDP over the 2013-2022 period.