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- CBO: US government will no longer be able to pay all obligations in the first two weeks of June
CBO: US government will no longer be able to pay all obligations in the first two weeks of June
The Congressional Budget Office (CBO) projects that if the debt limit remains unchanged, “there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations”. The CBO updated its budget outlook.
Key takeaways from the report:
“CBO estimates that if the limit is not raised or suspended, there is a significant risk that the Treasury will run out of funds at some point in the first two weeks of June.”
“CBO projects that if the debt limit remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations.”
“CBO’s updated baseline projections show a federal budget deficit of $1.5 trillion in 2023. Those projections reflect the assumption that current laws generally remain unchanged and that no further legislation affecting the federal budget is enacted this year.”
“Deficits generally increase over the coming years in CBO’s projections, totaling about $20 trillion over the 2024–2033 period. As a result of those deficits, debt held by the public grows significantly in CBO’s projections, rising from 98 percent of gross domestic product (GDP) this year to 119 percent in 2033—which would be the highest level of U.S debt ever recorded. Debt would continue to grow beyond 2033 if current laws generally remained unchanged.”
“The projected cumulative deficit for the 2024– 2033 period is now $51 billion greater than CBO estimated in February.”
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