(GoRealNewsNow.com) – President Joe Biden’s policies are wreaking havoc on the nation’s economy and finances, judging from the latest projections by the nonpartisan Congressional Budget Office (CBO).
On Tuesday, the CBO revised its previous forecast, declaring that the US government would end the 2023 fiscal year with a staggering budget deficit of $1.7 trillion, which would be the third-worst in America’s history.
Barely several months ago, the nonpartisan body of the US Congress projected a tangibly smaller deficit of $1.5 trillion for this fiscal year.
However, the big picture of the federal finances has turned grimmer as inflation keeps running high, the government has failed to collect the projected revenue, and “spending rages unchecked,” The Washington Times points out in a report.
It stresses the US government’s finances would have been even worse had it not been for the US Supreme Court’s June ruling to kill off Biden’s student loan forgiveness plan, which would have cost the American taxpayer a whopping $400 billion.
According to CBO, the biggest spike in the US government’s expenditures in FY 2023 is an increase of $146 billion, or 34%, in interest payments on public debt.
“On the basis of its estimate of the deficit through July and preliminary estimates of revenues and outlays in August and September, CBO now expects that the total deficit for 2023 will be $1.7 trillion, or about $200 billion larger than the estimate it published in May,” the congressional body says.
“Revenues and outlays alike are now anticipated to be below amounts projected in May, but the reduction in revenues is larger,” it adds.
Its figures show that in the first ten months of the 2023 fiscal year, the Biden administration squandered almost $500 billion more than it spent in the same period of the previous year.
At the same time, the federal finance scissors have opened wider as government revenue has declined by $400 billion between October 1, 2022, and July 31, 2023.
Thus, in the first ten months of FY 2023, the government ran a $1.62 trillion deficit, much worse than the $1.38 trillion deficit for the entire 2022 fiscal year.
“One factor [for the difference] may be smaller collections of taxes on capital gains and other types of income,” the CBO analysts said.
The grim new projection comes even though the government got a windfall with the Supreme Court’s ruling invalidating President Biden’s broad student loan forgiveness scheme. https://t.co/Wi367Lwn0Q
— The Washington Times (@WashTimes) August 9, 2023