CBO Says Stimulus to Swell 2020 U.S. Budget Gap by $1.6 Trillion
The federal government’s massive stimulus to cushion Americans and businesses from the coronavirus is forecast to swell the U.S. federal budget deficit by $1.6 trillion during this fiscal year, the Congressional Budget Officesaid Thursday.
While the CBO didn’t give updated projections for the deficit in the 12 months through September, based on pre-virus projections for a $1 trillion deficit the new gap would likely be equivalent to more than 10% of gross domestic product. That would make it the biggest by that measure since World War II as well as a record in dollar terms.
In the decade through 2030, the Coronavirus Aid, Relief and Economic Security Act will boost the deficit by $1.8 trillion, the CBO said.
For this year, the act will result in more than $1 trillion of estimated outlays, while reducing government revenue by $571 billion, according to the agency.
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