CBO predicts that the Congressional Budget Office’s (CBO) score of the U.S. government’s budget deficit for this year will be about $1,500 billion lower than President Donald Trump’s claim.
| AP Photo CBO predicts $1B deficit for 2017, $2.3B for 2018 CBO projects that the CBO’s score of U.C.B.O. fiscal year 2017 will be $1 billion lower.
The nonpartisan office released the analysis on Monday.
Trump said Monday on Twitter that the agency’s budget for the fiscal year that begins Oct. 1 will be “less than $1billion less than the original budget.”
CBO’s forecast assumes that the $1-billion difference will be covered by tax cuts for the middle class and the economy.
But the agency has not made a specific estimate of how much it expects the deficit to be in fiscal year 2018.
The Trump administration’s budget proposal for the budget year begins Oct.-Nov. 2019, but the CBO said its projection of the deficit for that year will include $2 trillion in tax cuts, including a repeal of the Obamacare individual mandate.
The CBO estimates that the elimination of the mandate would raise the deficit by $1-$2 trillion, and the loss of the individual mandate by $3 trillion.
CBO also projected that, if the government had stayed open, tax revenue would have grown by $7 trillion.
The agency’s fiscal year is the most important in which to estimate the government’s debt.
For that reason, CBO has been conducting regular analyses of the budget and tax bills, and releasing a quarterly budget score each month.
The score typically reflects CBO’s assessment of whether the proposed spending or tax changes would boost the economy and reduce deficits.
The 2017 fiscal year started Oct.1, and CBO released its score of fiscal year 17 in May.
The 2019 score is due out on Sept. 30.
CBO said the 2019 score includes $1.,737 billion in spending cuts and $2,636 billion in tax increases.
The bureau’s 2018 budget score is expected to be released Sept. 28.
CBO has forecasted that the government will continue to borrow $5.1 trillion this year.