Economic Forecasts
Congressional Budget Office Projections
The economic recession and recent laws have combined to sharply reduce the budget surpluses projected a year ago. In January 2001, the Congressional Budget Office (CBO) projected that under the laws and policies then in force, the Federal Government would run surpluses in Fiscal Years 2002 through 2011 totaling $5.6 trillion. In CBO’s new projections, that cumulative surplus has fallen to $1.6 trillion — a drop of $4 trillion About 60 percent of that decline results from legislation — primarily the tax cuts enacted in June and additional discretionary spending — and from its effect on the cost of paying…
