OMB's Mid-Session Review Will Show Greater Ten-Year Deficits
Late Friday the White House conceded that ten-year deficits would total around $9 trillion, according to their estimates. This is $2 trillion greater than the ten-year deficit number predicted in their May FY 2010 budget, which they stated to be $7.1 trillion. This puts the White House more closely in line with Congressional Budget Office (CBO) predictions, which put ten-year deficits at $9.1 trillion.
The change in these numbers can be partly attributed to updated projections on economic growth. The White House predicted before that the economy would shrink by 1.2 percent in May, when in fact it shrank by 6.4 percent in the first quarter.
The Mid-Session Review, which will include details of these updates, will be formally released tomorrow. The CBO is expected to release its updated Budget and Economic Outlook as well.