CBO says the federal deficit is projected to be $804 billion this year and will blow through $1 trillion by 2020, which is earlier than previously projected.
This fiscal year, which ends September 30, the budget deficit is expected to total $804 billion, up from $665 billion last fiscal year, according to the CBO projections.
If lawmakers take the route of least resistance, the CBO estimates that in ten years, the debt - which reflects the accumulation of deficits over the years - could reach 105% as a share of the economy, higher than at any time except right after World War II.
The government is slated to spend $4.1 trillion this year: $2.5 trillion of that on entitlements, $1.3 trillion on defense and domestic discretionary spending such as education and the environment, and $316 billion on interest payments on the debt.
In the near term, a rosier-than-expected economic outlook for individuals offered by the CBO could boost the Republican economic message as Trump's party seeks to retain control of Congress in the November midterm elections.
Real GDP will grow by 3.3 percent in 2018; 2.4 percent in 2019; and 1.8 percent in 2020, it said.More news: Chevrolet Camaro Breaks Cover In USA
The CBO said that "such high and rising debt would have serious negative consequences for the budget and the nation", which would include limiting the government's flexibility to introduce new policies and making it vulnerable to fiscal shock.
The deficits are expected to drive the national debt from $21 trillion now up to $33 trillion within 10 years. And they don't buy the Laffer Curve nonsense peddled in the U.S. and here by tax cut advocates, that company tax cuts will be so stimulatory that they'll produce a net tax revenue increase. The economic growth from the $1.5 trillion in tax cuts will add 0.7% on average to the nation's economic output over the coming decade, even though the president said they would pay for themselves.
At a news conference Monday, CBO Director Keith Hall said the increase "stems primarily from taxes and spending legislation enacted since then, especially the 2017 Tax Act, the Bipartisan Budget Act of 2018 and the Consolidated Appropriations Act of 2018".
His formal budget proposals have been far harsher, but the Republican-led Congress has pushed against his proposed cutbacks due to their political unpopularity and the need to attract Democratic votes in order to pass any plan. But such a measure has little chance of passing and the effort will largely be about political messaging. Trump has ruled out cuts to social security or Medicare and Republicans on Capitol Hill have failed to take steps against the deficit since Trump took office.
Trump has routinely ignored the debt and deficit.