U.S. federal deficit to hit $601 billion in 2019
CBO projects that the economy will grow at an average rate of 2.1 percent in the coming years, raising employment and wages.
That will also raise revenue for the government through income taxes, but not enough to offset rising entitlement costs from an aging population, the CBO said.
The 2016 federal deficit was $587 billion, and will drop to $559 billion in 2017 due to payment timings related to the start of the fiscal year.
After $487 billion in 2018, the deficit is projected to rise to $601 billion in 2019.
Though federal revenue is expected to rise from 17.8 to 18.4 percent of GDP in the next ten years, federal spending is projected to spike from nearly 20.3 to 23.4 percent, almost entirely due to Social Security and Medicaid. ■