The Congressional Budget Office has released its new budget and economic estimates for 2011. The report reveals the budget deficit forecast will hit $1.48 trillion for 2011. According to a CBO statement, 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. CBO Director Doug Elmendorf says CBO projections also show the national debt rising to $18 trillion in 10 years.
In the House, the GOP led budget committee will use the numbers to determine how much money the government can spend. Next week, the appropriations committee is expected to draft a continuing resolution reflecting those numbers, and Republicans will put the continuing resolution up for a vote on the House floor.
For closer Congressional inspection, the Senate Budget Committee is holding a hearing Thursday with CBO Director Elmendorf to review the agency's latest report. Next month, President Obama is expected to announce his fiscal goals when he releases his fiscal year 2012 budget.