July 13, 2017 / 4:10 PM / 5 months ago

CBO says Trump budget would reduce deficit but not balance budget

WASHINGTON, July 13 (Reuters) - The nonpartisan Congressional Budget Office said on Thursday that President Donald Trump’s 2018 budget would reduce the federal deficit over the next decade but the reduction will be lower than White House estimates due to slower economic growth.

Trump’s 2018 fiscal budget would cause the federal budget deficit to shrink relative to the size of the economy over the next 10 years, ranging between 2.6 percent to 3.3 percent of Gross Domestic Product (GDP) during that period, the CBO said.

Under Trump’s budget, the cumulative federal deficit would be one-third smaller than CBO baseline projections that show deficits rising to 5 percent of the GDP by 2027, the CBO said.

The CBO report contradicts a claim made by the White House that its budget would balance the budget within a decade. (Reporting By Amanda Becker)

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