February 15, 2023
Highlights of CBO’s Update to the Budget and Economic Outlook for 2023–2033
Director of Fiscal Policy Gordon Gray breaks down the key points of the Congressional Budget Office’s (CBO) Budget and Economic Outlook: 2023–2033. The update shows, among other things, that the debt will eclipse the highest levels in U.S. history by the end of fiscal year 2028.
- Since CBO’s last baseline update in May 2022, the combination of more deficit-financed spending, interest costs, and other economic factors have contributed an estimated $3.1 trillion in higher deficits on net, with debt service payments increasing by more than $1.6 trillion over a comparable period.
- CBO has significantly marked down the near-term economic outlook, forecasting real GDP growth to “stagnate” over the course of the year and unemployment to rise.
- The CBO outlook presents a federal budget that reflects the risks of running structural deficits with high levels of indebtedness.