CBO Blog


CBO Estimates That Greater Prescription Drug Use by Medicare Beneficiaries Reduces Medicare’s Spending for Medical Services November 29, 2012 Previously, when estimating the budgetary effects of legislation regarding prescription drugs, CBO found insufficient evidence of an “offsetting” effect of prescription drug use on spending for medical services. Recently, CBO reviewed dozens of newer studies and determined that a body of research now demonstrates a link between changes in prescription drug use and changes in the use of and spending for medical services.
When Is Federal Debt Likely to Reach the Statutory Limit? November 29, 2012 The Congress has traditionally placed a limit on the total amount of debt that the Department of the Treasury can issue to the public and to other federal agencies. Lawmakers have enacted numerous increases to the debt limit—commonly known as the debt ceiling—some of which have been temporary and many of which have been permanent.
CBO Releases a Report on Unemployment Insurance November 28, 2012 Unemployment insurance benefits topped $150 billion during 2010—when the annual unemployment rate peaked at 9.6 percent—up from $33 billion in fiscal year 2007. As discussed in today’s CBO report—Unemployment Insurance in the Wake of the Recent Recession—benefits grew not only because of increased layoffs of workers, but because of several changes to the unemployment insurance (UI) system over the last few years.
CBO Releases Latest Quarterly Report on ARRA’s Effect on Output and Employment November 20, 2012 As required by law, CBO prepares regular reports on its estimate of the number of jobs created by the American Recovery and Reinvestment Act of 2009 (ARRA), which was enacted in response to significant weakness in the economy.
CBO Releases a Report on Effective Marginal Tax Rates for Low- and Moderate-Income Workers November 15, 2012 This afternoon CBO released a new report on Effective Marginal Tax Rates for Low- and Moderate-Income Workers.
CBO Releases Report on Costs of Pay and Benefits in the U.S. Military November 14, 2012 In its fiscal year 2013 budget request, the Department of Defense (DoD) requested about $150 billion to fund the pay and benefits of current and retired members of the military. That amount is more than one-quarter of DoD’s total base budget request (the request for all funding other than for military operations in Afghanistan and related activities). Today CBO released a report, Costs of Military Pay and Benefits in the Defense Budget, that describes the elements of military compensation and their costs in the 2013 budget request.
CBO Releases Report Examining the Reasons for the Slow Growth of the Economy Since the Recent Recession November 14, 2012 CBO regularly issues reports on the state of the budget and the economy, and today CBO released a study, What Accounts for the Slow Growth of the Economy After the Recession?, with an accompanying infographic providing background information that helps to explain the economic projections included in those reports.
CBO Releases a Report on the Economic Effects of Policies Contributing to Fiscal Tightening in 2013 November 8, 2012 Significant tax increases and spending cuts are slated to take effect in January 2013, sharply reducing the federal budget deficit and causing, by CBO’s estimates, a decline in the nation’s economic output and an increase in unemployment. What would be the economic effects of eliminating various components of that fiscal tightening—or what some term the fiscal cliff?
The Challenge of Deficit Reduction November 8, 2012 In fiscal year 2012, the federal budget deficit surpassed $1 trillion for the fourth year in a row. If lawmakers maintained current policies by preventing most of the tax increases and spending cuts that are scheduled to occur in January, deficits would total almost $10 trillion over the next decade. Federal debt held by the public would increase from nearly 73 percent of gross domestic product (GDP) at the end of 2012 to 90 percent of GDP 10 years from now.
The Federal Budget Deficit Shrank in Fiscal Year 2012 but Still Exceeded $1 Trillion November 7, 2012 Last month, the Treasury Department reported that the federal government incurred a budget deficit of $1.1 trillion for fiscal year 2012—$207 billion less than that in 2011. Fiscal year 2012 marks the fourth consecutive year with a deficit above $1.0 trillion. As a share of the nation’s gross domestic product (GDP), the deficit declined—from 8.7 percent in 2011 to 7.0 percent in 2012—but it was still the fourth highest as a share of GDP since 1946.