The Congressional Budget Office issued updated figures today that predict the budget deficit for fiscal year 2011 will be a flaming huge $1.5 trillion. That’s about $414 billion bigger than the CBO last August figured this year’s shortfall would be. And yes, it would be a record in terms of absolute dollar red ink for Uncle Sam.
Things get better in 2012 though, according to the CBO’s new budget and economic outlook. Budget deficits would “drop markedly,” especially if measured as a percentage of national economic output, according to the report.
With the economy recovering and some government spending programs ending, the 2012 shortfall will be $1.1 trillion, representing about 7 percent of US gross domestic product, say the CBO’s budgeteers. In 2013, those figures will be $704 billion and 4.3 percent of GDP, and in 2014 they’ll be $533 billion and 3.1 percent of GDP.