CBO Blog


CBO's Estimates of the Budgetary Effects of the Revised Deficit Reduction Plans July 29, 2011 In a blog post on Wednesday, I discussed CBO’s analysis of plans to reduce future budget deficits put forward by House Speaker John Boehner and Senate Majority Leader Harry Reid as part of proposals to raise the limit on the national debt. In the past couple of days, both the Speaker and Majority Leader have proposed revised versions of those plans. CBO’s estimates of the revised versions are described in these letters: Senate Majority Leader Reid’s Plan, Proposed on July 29
The Debt Ceiling July 27, 2011 In less than a week, according to projections from the Treasury Department, the U.S. government will begin defaulting on some of its obligations unless the Congress and the President increase the statutory ceiling on federal debt. (CBO doesnt analyze the Treasurys daily cash management, so we have no independent projection of the date.) The continuing debate about alternative approaches to raising the debt ceiling is taking place against a backdrop of serious ongoing problems with the federal budget and the economy that raise the stakes for decisions about the debt ceiling and budget policy.
Budget Control Acts of 2011 July 27, 2011
CBO Testified on the Potential Costs of Health Care for Veterans of Recent and Ongoing U.S. Military Operations July 27, 2011
CBO Testified on Selling Federal Property July 27, 2011
The Effects of Renewable or Clean Electricity Standards July 26, 2011
More About the Challenge of Attaining a Sustainable Federal Budget July 22, 2011 Earlier this week, I wrote a blog posting about the challenges facing policymakers as they work to put the federal budget on a sustainable path.
The Challenge of Attaining a Sustainable Federal Budget July 18, 2011 As the nation addresses the budgetary challenges facing the federal government, one of the central questions to resolve is how big a government we want to have. During the past 40 years, government spending has ranged from as low as 18.2 percent of gross domestic product (GDP) in 2000 and 2001 to as high as 25.0 percent in 2009, averaging about 21 percent. Revenues, however, have averaged only 18 percent of GDP.
The Macroeconomic and Budgetary Effects of an Illustrative Policy for Reducing the Federal Budget Deficit July 14, 2011 Adopting a deficit reduction plan would have three kinds of effects on the budget. One would be the direct effect of the plan’s changes to spending and revenues. A second effect would be a reduction in interest payments by the government, as smaller deficits would result in lower federal debt. A third effect would result from the fact that smaller deficits would affect the economy in various ways, in turn leading to further changes in federal spending and revenues.
The Federal Budget Deficit Through Nine Months of the Fiscal Year: About $973 Billion July 8, 2011