WASHINGTON (MNI) – The White House Friday updated its projection
for budget deficits into 2022, now expecting a $1.2 trillion deficit
this year compared to February’s estimate of $1.32 trillion.
The Mid-Session Review updates estimates of Federal receipts,
outlays, and the deficit for legislation enacted through early July, and
for a revised economic forecast, technical reestimates, and other policy
changes that have occurred since the President’s Budget was released in
February.
The Office of Management and Budget released the Mid-Session
Review, which updates the Administration’s estimates for outlays,
receipts, and the deficit in light of economic, legislative, and other
developments since the President’s 2013 Budget was released in February.
“Relative to the February estimate, the deficit is now projected to
be higher in 2013, estimated at $991 billion as compared to $901 billion
in February,” it said.
Real GDP is expected to rise by 2.6% during the four quarters of
2012 and to increase 2.6% in the four quarters of 2013. The unemployment
rate is projected to reach 7.9% by the fourth quarter of 2012, below its
level in June.
The report called the eurozone crisis a “significant risk” the U.S.
recovery and the global economy. Still, “The U.S. economy is operating
well below its capacity, with higher levels of unused resources than at
any time in over a quarter century. The potential for a more rapid
recovery is present in this low level of resource utilization,” the OMB
said.
** MNI Washington Bureau: 202-371-2121 **
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