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Economic News, Data and Analysis

CBO deficit estimates

CQ is reporting on deficit estimates. The CBO estimate for 2002 will apparently be about 3x the Whitehouse’s.

CBO GLOOMIER THAN WHITE HOUSE ON OUT-YEAR BUDGET DEFICITS
The Congressional Budget Office is expected tomorrow to underscore the remarkable deterioration in the government’s fiscal health over the last two years and to forecast bigger deficits than President Bush has predicted in both the short- and long-term. The CBO has already said the government will run a deficit of around $157 billion in fiscal year 2002– breaking a run of four straight years of surpluses. That is close to the White House Budget Office’s forecast of a $165 billion deficit. In 2003, however, the White House predicts a baseline deficit of $62 billion, while congressional analysts from both political parties expect the CBO to forecast almost three times as much red ink. The Democratic staff of the Senate Budget Committee last week predicted a $180 billion deficit in the coming fiscal year, which begins Oct. 1. The committee’s Republican staff director, Bill Hoagland, told Reuters he expected to see a CBO deficit forecast of between $160 billion and $170 billion.

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