Obama's Budget Increases Deficit By 41% Over CBO Baseline Over Next Decade

Submitted by Tyler Durden
04/18/2011 12:34 -0400
71 comments

In release timed perfectly so as not to interfere with the congressional vote last week, late on Friday the CBO put out its comparison http://cbo.gov/ftpdocs/121xx/doc12130/0 ... Budget.pdf of the Obama's budget, proposed back in February, with the CBO baseline assumption. The bottom line, and probably the main reason for the implicit S&P downgrade of the US, is that comparison the President's budget to the CBO baseline indicates that deficits are expected to rise by 41% over the next 10 years: the CBO project a deficit of $6.7 trillion while the President's number is $9.5 trillion, a 41% increase or $2.7 trillion. Got printing presses?

From the preface to the 53 page report http://cbo.gov/ftpdocs/121xx/doc12130/0 ... Budget.pdf which readers can peruse at their leisure or use as a paperweight:

At the request of the Senate Committee on Appropriations, the Congressional Budget Office (CBO) has prepared an analysis of the President’s budgetary proposals for fiscal year 2012, which were released on February 14, 2011. The analysis uses CBO’s economic assumptions and estimating techniques, rather than the Administration’s, to project how the proposals in the President’s budget would affect federal revenues and outlays and the U.S. economy. For tax provisions, the analysis incorporates estimates prepared by the staff of the Joint Committee on Taxation.

This analysis follows and supplements CBO’s “Preliminary Analysis of the President’s Budget for 2012,â€