The Congressional Budget Office projects $1 trillion in federal budget deficit in 2022 and expects federal debt held by the public to fall to 96 percent of gross domestic product by 2023 and then increase following that year, hitting 110 percent over the next decade.
CBO said Tuesday it expects outlays to average 23 percent of GDP over the next 10 years, deficit to rise to 6.1 percent of GDP by 2032 and total revenues to hit 19.6 percent of GDP in 2022, which reflects the highest level in 20 years.
According to the agency, revenues are projected to stay above the five-decade average of 17.3 percent of GDP throughout the next 10 years.
CBO noted that unemployment rate averages 3.8 percent in 2022, real GDP increases by 3.1 percent and the price index for personal consumption expenditures rises by 4 percent this year.
According to the report, the projected 10-year deficit in CBO’s May 2022 baseline was $14.5 trillion, up $2.4 trillion from the agency’s baseline projections in July 2021.