CBO Projects Federal Budget Deficit To Hit Record $1.7T In 2030

The video discusses the projected increase in the US federal deficit, which is expected to reach $1 trillion this year and could hit $1.7 trillion by 2030. The Congressional Budget Office (CBO) reports that the deficit will account for 4.6% of the GDP this year, growing to 5.4% by 2030. If unchanged, the national debt could equal 98% of GDP by 2030, the highest since WWII. The national debt represents the money spent beyond the budget, currently at $22 trillion. The federal budget deficit is the gap between expected tax revenue and actual spending, with recent years showing significant increases. CBO Director Phillips Swagel warns of economic stagnation and rising interest rates due to the debt path, influenced by tax cuts and spending increases. However, the economy is expected to grow by 2.2%, slightly above projections.

What is the projected federal deficit for the year 2030?

• $1 trillion

• $1.7 trillion

• $2 trillion

• $1.5 trillion

How much of the US GDP is the national debt expected to equal by 2030?

• 90%

• 95%

• 98%

• 100%

What was the federal deficit in 2019?

• $1.2 trillion

• $439 billion

• $1 trillion

• $984 billion

Which factors contributed to the rise in the deficit according to Phillips Swagel?

• Decrease in education funding

• Reduction in foreign aid

• 2017 GOP tax cut and increased defense spending

• Increased healthcare spending

What is the revised economic growth projection shared by the CBO?

• 2.1%

• 2.0%

• 2.2%

• 2.3%