Kenneth Gold | October 9, 2014
Yesterday the Congressional Budget Office issued its preliminary deficit projection for FY 2014, estimating a deficit of under a half trillion dollars. The FY14 deficit of $486 billion would be $195 billion under last year’s deficit, and the fifth consecutive year that the deficit has fallen as a percentage of GDP since the FY09 record deficit of $1.4 trillion. The long-term outlook, however, looks somewhat less rosy, with CBO projecting that deficits will again begin increasing in FY16, and continue to rise in the years ahead.
In the short term, the current continuing resolution expires December 11, so the lame duck Congress that will meet after next month’s elections will need to do something about funding the federal government past that date. That something will depend in part on the results of the elections, especially whether Republicans win a majority in the Senate in the 114th Congress.
We will look at the federal budget outlook and other issues critical to federal departments and agencies in our New Congress classes, with the first class scheduled for December 16. I hope to be seeing many of you there.