CBO Projects Larger Deficit
for 2003
May 16, 2003 - In its monthly
budget review, the Congressional Budget Office (CBO) May
9 stated it now expects the federal government will end 2003
with a deficit of more than $300 billion, significantly more
than CBO's March baseline estimate of $246 billion. The review
notes that according to CBO estimates, the federal government
ran a deficit of about $202 billion in the first seven months
of FY 2003, which is $138 billion more than the same period
last year.
CBO attributed the increased deficit projection to "weaker-than-projected
revenues and additional outlays of more than $40 billion from
the recently enacted supplemental appropriation bill."
Receipts for the first seven months of the fiscal year were
5.5 percent lower than the same period last year while outlays
were 6.4 percent higher. Growth in defense spending remains
strong, although the report cautions "much of the budgetary
impact of the war in Iraq has not yet been realized."
The review also states that spending for most nondefense programs
has been growing more slowly than last year, including Medicaid,
which rose by 13 percent last year versus 7 percent growth
so far this year.
Information:
Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
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