The year's fiscal outlooked darkened after the Congressional Budget Office (CBO) released its new budget and economic estimates for 2011. CBO Director Doug Elmendorf held a briefing on the 2011 Budget and Economic Outlook and revealed the report's findings that the budget deficit will hit $1.48 trillion for 2011.
According to the CBO, the recent recession was "triggered by a large decline in house prices and a financial crisis—events unlike anything this country has seen since the Great Depression." The statement added that along with a historically slow economic growth rate, "the unemployment rate has remained quite high."
Director Elmendorf told reporters that while he expects a deficit spending total of almost 1.5 trillion this year, CBO projections also show the national debt rising to $18 trillion in 10 years.
GOP-led budget committees will use the numbers to determine how much money the government can spend. One of them, the Appropriations Committee, will draft a continuing resolution reflecting those numbers, and Republicans will put the CR up for a vote on the House floor.
In mid February, President Obama is expected to announce his fiscal goals when he releases his fiscal year 2012 budget.