CBO anticipates that the economy will grow slowly this year and then at a faster but still moderate pace over the next few years, driven largely by stronger growth in business investment, consumer spending, and residential investment.
The deficit this year will be $506 billion, CBO estimates, about $170 billion lower than the deficit in 2013. After a weak first half of this year, CBO expects economic growth to pick up and the unemployment rate to continue to fall.
Director Doug Elmendorf spoke to the press about CBO's latest budget and economic projections. His remarks and slides are included in this blog post.
CBO issues one of its regular reports that provides estimates of the caps on discretionary budget authority for each fiscal year through 2021. By CBO’s estimate, appropriations for fiscal year 2014 have not exceeded those caps.
The federal government ran a budget deficit of $462 billion for the first 10 months of fiscal year 2014, CBO estimates—$146 billion less than the shortfall recorded over the same span last year.
From 2000 to 2013, the number of veterans receiving VA disability payments rose by nearly 55 percent, and spending for those benefits almost tripled. How might changes in VA's disability compensation program affect the federal budget?
The report will be available on CBO's website at 10:00 a.m. on the day of release.