Biden Administration lowers deficit forecast by $400 billion

Washington D.C. – Transport Topics recently reported on the Biden administration “forecasting that this year’s budget deficit will be nearly $400 billion lower than it estimated back in March, due in part to stronger than expected revenues, reduced spending, and an economy that has recovered all of the jobs lost during the multiyear pandemic.”

In total, the annual deficit for this year will go down by $1.7 trillion, “the single-largest decline” in American history. According to the administration’s Mid-Session Review, the economy’s “transition from a historic and rapid recovery to stable and steady growth” is responsible for much of the improvement in the deficit forecast for this year. They also reported that “while the nonpartisan Congressional Budget Office in July said that fast economic growth and higher tax revenues have caused the federal debt this year to be lower than forecast, the organization warns in its 30-year outlook that debt will soon spiral upward to new highs that could ultimately imperil the U.S. economy.”