By the time inflation comes under control sometime next year, the federal budget deficit will be ballooning once again—and on course to hit $2 trillion annually by the end of the decade.
The new economic and budgetary outlook released by the Congressional Budget Office this week forecasts steady if unspectacular economic growth for the next 10 years, falling inflation rates, and climbing budget deficits. The report projects that "the current economic expansion continues, and economic output grows rapidly over the next year." But the government continues to spend more than it collects in tax revenue, driving annual budget deficits to $1.7 trillion by 2028 and $2.3 trillion by the end of the 10-year budget window in 2032.
