C.B.O. - Borrowing and Blowing to Continue

The U.S. Congressional Budget Office predicted the budget deficit for fiscal year 2011 will be $1.066 trillion, revised up from an estimate of $996 billion in March. The nonpartisan agency’s semi-annual budget report is likely to add fuel to the November midterm election debate over reducing the deficit at a time when the nation’s economic recovery may call for more stimulus. Today’s report estimated that the deficit will be 7 percent of the nation’s gross domestic product in 2011. CBO Director Doug Elmendorf said the agency’s projections haven’t changed significantly since its March forecast, reflecting an economy that continues to struggle to recover from recession and the prolonged impact of bailouts and other spending designed to spur growth. Read more here:

C.B.O. - Borrowing and Blowing to Continue