US budget deficit to hit $1.9 trillion in 2025

The Congressional Budget Office (CBO) projected on January 17 that the federal budget deficit would hit $1.9 trillion in fiscal 2025, Report informs via The Hill.

The nonpartisan budget scorekeeper estimated that federal spending would total $7 trillion during the fiscal year, amounting to 23.3 percent of the country’s gross domestic product (GDP). That figure is estimated to reach 24.4 percent in 2035, as spending in areas like Social Security, Medicare and net interest costs is expected to grow.

At the same time, revenues are projected to hit $5.2 trillion this year, reaching 17.1 percent of the nation’s GDP. The figure is estimated to rise 1.1 percent by 2027 and see an overall 0.1 percent increase by 2025.

The CBO cited expiring provisions of President-elect Trump’s 2017 tax law as a key factor behind the increases in revenues.

It also noted downward revisions to its projections of the cumulative deficit through 2034, as a result of estimated growth in “projected collections of individual income taxes, driven by greater projections of taxable income.”

The CBO projected deficits over the 10-year window would total $21.1 trillion, or $1 trillion lower than it projected last year.