CBO Says 2010 Deficit Slightly under $1.3 Trillion
CBO, in its most recent Monthly Budget Review, estimated that the FY 2010 budget deficit (the fiscal year that ended at the end of September) was just short of $1.3 trillion, $125 billion less than last year's deficit of $1.4 trillion. At 8.9 percent of GDP, this is the second highest deficit-GDP rate since World War II, with the highest being last year's 10 percent. This number also represents a slight drop from the 2010 deficit CBO reported in its most recent Budget and Economic Outlook this past August.
While the deficit is slightly lower than last year, we are by no means on the path to triumph over our fiscal challenges. In our recent realistic baseline, CRFB projected that while deficts will decline in the next few years, the debt will continue to rise as a share of the economy to unsustainable levels without action.
Although an improving economy (hopefully) will reduce deficits in the short-term, we must devise a plan of action now to address the structural issues that will cause the debt to skyrocket. Click here to try doing so yourself.