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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.

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(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.

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

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