Daily Archives: March 7, 2010

Revised Numbers Add National Debt by $9.7 Trillion

The  Congressional Budget Office has revised President Obama  budget out and found it wanting. The CBO released the 10 year forecast that increased government  spending and lower tax collection led to a$ 9.7 trillion increase to the national debt.

The proposed middle class tax cuts contributed to the shortfall.

The White House budget numbers predicts the National Debt will increase by $8.5 trillion by 2020.

Short term the deficit will be a $1.5 trillion; White House and CBO  figures line up. This equals to 10.3% of the US economy. In 2011 the deficit will shrink by $1.3 trillion. However, by 2015 with Obama spending outlays the debt will not shrink below 4 %.

By that standard the deficits will become 90% of the economy. Interest payment will balloon to $880 billion by 2020.

Washington Post has more.