The Budget for Fiscal Year 2006

Abstract

The budget report of the Congressional Budget Office (CBO), The Budget and Economic Outlook: Fiscal Years 2006-2015 (January 25, 2005), included baseline estimates (assuming current policies) for FY2005 through FY2015. Under the baseline assumptions, CBO estimated a FY2006 deficit of $295 billion (2.3$368 billion, 3.0% of GDP). CBO’s baseline estimates do not include assumptions about possible future legislation that may increase or decrease spending or receipts and therefore change the deficit. The baseline assumptions assume the continuation of current law, including that laws changing the level of future revenues or outlays will go into effect as scheduled. Hurricane Katrina’s devastation of the central Gulf Coast and additional damage done by Hurricane Rita has changed the budget outlook for fiscal year (FY) 2006