A Congressional Budget Office report predicts the federal budget deficit to hit $590 billion in fiscal year 2016, a figure $56 billion higher than the agency’s shortfall projection in March and $152 billion up from the previous fiscal year.
CBO said Tuesday it forecasts public debt to rise from $14 trillion by the end of 2016 to $23 trillion, or 86 percent of gross domestic product, by the end of 2026 due to the increase in budget deficit.
The agency also predicts annual federal outlays to increase by $2.4 trillion to 23.1 percent of GDP by 2026 driven by growth in interest payments and mandatory spending.
The budget shortfall will climb from 3.2 percent of GDP in 2016 to 4.6 percent of GDP in 2026, according to the report.
CBO expects revenues to gradually rise from 17.8 percent of GDP or $3.3 trillion in 2016 to 18.5 percent of GDP or approximately $5 trillion by 2026.
The agency also lowered its 10-year cumulative deficit forecast from $9.3 trillion to $8.6 trillion between 2017 and 2026, a $0.7 trillion drop from its estimated deficit in March.