US budget deficit could quadruple to $3.7 trillion in pandemic crisis: CBO



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US budget deficit could quadruple to $3.7 trillion in pandemic crisis: CBO

On Friday, the 24th of April 2020, a perspicacious bunch of US Congressional forecasters said that a nationwide forced lockdown of businesses alongside an unprecedented surge in stimulus package in order to mitigate the financial fallouts of the pandemic, would likely to quadruple US Federal budget deficit to a record $3.7 trillion this fiscal year as the United States had been seeking to reopen some parts of its economy as early as by next week.

Apart from that, according to Friday’s (April 24th) forecast from the non-partisan Congressional Budget Office, US economic growth would be plunged by more than 40 per cent over the second quarter of the year compared to the same time a year earlier, nevertheless, the Congressional Budget Office (CBO) had predicted a strident silver lining on US economy over the second half of the year as the pandemic-hit nation’s growth would likely to witness a stronger rebound.

However, underscoring the fiscal pressure US lawmakers would be facing off over the coming weeks, Friday’s (April 24th) CBO report said, “If the laws currently in place governing spending and revenues generally remained unchanged and no significant additional emergency funding was provided, the federal deficit would be roughly $3.7 trillion in fiscal year 2020 and $2.1 trillion next year,” adding that US unemployment rate would likely to take a sharp downswing from 16 per cent, but would remain in the double-digits until end-2021.