CBO Projects 2024 Federal Budget Deficit to Surge to $2 Trillion Due to Increased Spending

The Congressional Budget Office (CBO) forecasts a notable rise in the federal budget deficit for the year 2024.

The CBO forecasts that the 2024 federal budget deficit will soar to $2 trillion as a result of higher spending

In 2024, the federal budget deficit is set to reach almost $2 trillion, up $400 billion from February, mainly due to increased spending. Major factors contributing to this rise include $145 billion for student loan forgiveness, $70 billion for higher deposit insurance costs $60 billion from new legislation and $50 billion in increased Medicaid expenses, according to Reason report.

READ ALSO: 1 Million Pensions Saved: What You Need To Know About President Joe Biden’s American Rescue Plan!

(photo: Fox Business)

The Congressional Budget Office’s latest projections indicate that the federal deficit is expected to reach $2.8 trillion by 2034

The Congressional Budget Office (CBO) forecasts that the deficit in 2034 will reach $2.8 trillion, an increase from $2.5 trillion previously estimated. Over the period from 2025 to 2034, the cumulative deficit is projected to amount to $22.1 trillion. Analysts caution that this mounting debt could result in elevated interest rates and potentially trigger a financial crisis. In response, the Cato Institute recommends immediate spending reductions as a preventive measure.

READ ALSO: Supreme Court Greenlights Tax On Foreign: What It Means For Your Wallet And The Future Of Taxes

Experts warn this rising debt may lead to higher interest rates and economic instability urging immediate spending cuts to reduce risks.