The US government deficit is set to reach almost $2tn this year, the Congressional Budget Office warned, saying new commitments to fund Ukraine and Israel would push up spending to levels well in excess of those anticipated in February.
The CBO, which serves as lawmakers’ independent fiscal watchdog, on Tuesday projected the deficit will top $1.9tn — or 7 per cent of gross domestic product earlier this year — up from its February forecast of $1.5tn.
The biggest reason for the rise was legislation that provides $95bn to Ukraine, Israel and countries in the Indo-Pacific region. Over the next 10 years, the legislation was expected to add a total of $900bn to government spending.
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