If all goes according to plan, the United States federal budget deficit will shrink in 2015, and will be the lowest it has been since Barack Obama took Office.
On Monday The Congressional Budget Office stated the deficit would be 468 billion dollars for the budget year that ends in September released a report; last years deficit was 483 billion. They also stated that they expect a 14 percent in those without health insurance because of Obama’s health care reform; making the number drop from 42 million last year to 36 million this year.
The Congressional Budget Office, CBO, expects that in future years the deficit will continue to lower, and the report given Monday stated, “In CBO’s estimation, increases in consumer spending, business investment and residential investment will drive the economic expansion this year and over the next few years.”
They are concerned of what will happen after 2018 when they estimate that a majority of the baby boomers will retire and file for social security causing the deficit to once again rise. They stated that unless congress acts accordingly then the deficits could potentially rise again to 1 trillion dollars.
CBO Director Douglas Elmendorf states that social security makes up for an average of one fourth of the federal spending and that, “The underlying point is that we have a handful of very large federal programs that provide benefits to older Americans, and with the rising number of older Americans and a rising cost of health care, those programs get much more expensive.”
Republicans state that they are the ones responsible for cutting the spending and Sen. Charles E. Schumer stated “Over the last few years as deficits have fallen, so too has the effectiveness of Republican rhetoric about a ‘big government’ boogeyman. “Now is the time for Republicans to join with Democrats to invest in constructive programs that help middle-class Americans climb the ladder and achieve the American dream.”
The White House claims they still have a lot of work to do. “CBO’s longer-term budget and economic projections confirm the need for Congress to act to strengthen our economy for the middle class while putting our debt and deficits on a sustainable trajectory, including by making the investments that will accelerate economic growth and generate good new jobs for our workers to fill,” proclaims Deputy Press Secretary Eric Schultz.
Photo: Via AP