Mid-Session Review to Report Lower 2009 Deficit
August 20 - Next Tuesday the Office of Management and Budget (OMB) will release their Mid-Session Review of the budget. They plan to announce that the federal deficit this year will total $1.58 trillion, three times more than the FY 2008 deficit, but about $260 billion less than they predicted in their FY 2010 budget released in May. The shortfall was previously thought to come out at $1.84 trillion.
Most of this difference is due to the Administration providing around $250 billion less in aid to Wall Street than they had previously accounted for in their budget. Obama had initially factored in this $250 billion "placeholder" to spend on an additional bailout of troubled banks, but ended up not asking Congress for the money so as to avoid criticism for excessive spending. Additionally, spending at the FDIC is expected to be $78 billion less than originally forecast.
The nation's debt is currently $11.7 trillion, with another $1.26 trillion deficit predicted for next year by the OMB.
The Congressional Budget Office is expected to come out with their updated budget outlook on the same day as the Mid-Session Review is released. Look here next week for an analysis by CRFB.