The Federal Deficit Is Even Bigger Than It Looks

When it comes to the size of the federal government’s annual deficit, appearances can be deceiving.

  • A projection by the Congressional Budget Office claimed the gap between spending and revenue for fiscal year 2023 was $1.7 trillion.
  • The gap was actually much larger. That is because of the odd way President Biden’s attempt to broadly cancel student debt shows up in budget figures.

Without the student-debt-cancellation proposal muddling the numbers, the deficit for fiscal year 2022 would have been smaller than originally reported, around $1 trillion. And the gap for fiscal 2023 would be bigger, about $2 trillion.

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