According to initial projections, the US federal budget deficit will grow to more than $ 1 trillion in the next fiscal year.
The projections were made in light of the big budget agreement reached this summer by President Donald Trump and Congress, the Congressional Budget Office announced.
Bringing back the annual budget deficit to one trillion dollars comes despite Trump's promise during the 2016 presidential campaign that he would not only balance the budget but also repay the entire national debt, according to AP.
The office increased this year's deficit projection by $ 63 billion, and its cumulative deficit projection for the next decade by $ 809 billion. The deficit projection increased even as the CBO lowered its estimate of interest rates, which reduced borrowing costs, and increased its short-term economic growth forecast.
According to an analysis of the CBO, which covered a huge amount of data, it is estimated that the budget deficit will reach $ 960 billion in the current fiscal year, and that it will exceed $ 1 billion in the next one, which starts on October 1.
The office said the budget agreement signed earlier this month, which eliminates the danger of a government blockade in October and the threat of deep automatic spending cuts, will raise the deficit by $ 1.7 trillion over the next 10 years, B92 reports.
The CBO also predicts that the US economy will slow growth from this year's 2.3 percent to 1.8 percent on average over the next four years. This projection implies slower growth in private consumption and government purchases, as well as the impact of trade policies on business investment.
The Office of Budget also forecasts that the unemployment rate will remain close to the current level of 3.7 percent by the end of 2020 and then rise to 4.6 percent by the end of 2023.