U.S. Budget Deficit to Reach Near-Record $3 Trillion in 2021, CBO Says
- New CBO forecasts take account of $1.9 trillion pandemic bill
- CBO sees much faster growth this year than previously forecast
Photographer: Stefani Reynolds/Bloomberg
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The U.S. will see a $3 trillion budget deficit this year, close to the 2020 record, while the economy will expand notably more than previously forecast, the Congressional Budget Office said as it incorporated the impact of President Joe Biden’s Covid-19 relief program.
The deficit is seen narrowing to $1.15 trillion in 2022, the nonpartisan arm of the legislature said in a 10-year economic and budget projections report on Thursday. The deficit for the full 2020 fiscal year was $3.13 trillion, the biggest relative to the size of the economy since World War II.