Today the Congressional Budget Office has released a brutal analysis of President Obama’s first budget, determining that it would create cumulative deficits of $9.3 trillion between 2010 and 2019, which is more than double the $4.4 trillion baseline CBO projection under current law. The CBO deficit projections for the Obama budget are $2.3 trillion higher than the estimates made by the White House.
The CBO also had to revise upward by $400 billion its baseline deficit estimates for 2009 ($1.7 trillion) and 2010 (now $1.1 trillion), but if the Obama budget passes, those numbers rise to $1.8 trillion in 2009 and $1.4 trillion in 2010. Either way, they are the largest deficits as a percentage of GDP since 1945, when the country was paying for WWII military spending.
CBO expects those deficits to decline as the economy improves, but looking at the chart below demonstrates how much worse the deficits will be if Obama gets his way. The lower the line, the wider the deficit.
Total Deficit or Surplus (Percentage of GDP)