CBO Projects $199 Billion
Deficit for FY 2003
January 31, 2003 - The Congressional Budget Office
(CBO) Jan. 29
predicted the federal budget deficit for FY 2003 will
be $199 billion. This deficit projection is $54 billion greater
than CBO's estimate in August 2002. The actual deficit in
FY 2003 is expected to be higher than CBO's projection, which
does not include any estimates for the cost of military action
against Iraq or new tax cut proposals such as those put forth
by President Bush or congressional Democrats. In addition,
CBO's estimate is based on the assumption that discretionary
budget authority in FY 2003 will be $51 billion. However,
the omnibus appropriations bill passed by the Senate Jan.
23 would provide about $755 billion in discretionary funding
in FY 2003.
White House Office of Management and Budget Director Mitchell
Daniels predicted Jan. 28 that the deficits for FYs 2003 and
2004 would approach 3 percent of the economy, or more than
$300 billion a year. These estimates, which will be released
Feb. 3 as part of the President's FY 2004 budget, do include
the cost of tax cuts and other new spending proposals by the
Administration, but not the cost of the war with Iraq.
Information:
Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
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