by Calculated Risk on 11/01/2006 08:54:00 PM

The Federal Government's fiscal year 2007 started on October 1st. The good news is the National Debt only increased $77.4 Billion in October.

The bad news is that is the third worst October ever.

Click on graph for larger image.
Estimates from CBO are for the budget deficit to increase in fiscal 2007, as compared to 2006. Of course the CBO projections are based on 4.2% GDP growth in Q4 2006, and 3.0% GDP growth in calendar 2007.

I suspect growth will be below the CBO estimates and the General Fund deficit will probably be larger than their current projection of $471 Billion for fiscal 2007. If the economy slows, the National Debt will probably increase by $600 Billion or more this year.