The Current Fiscal Picture
- This year's budget deficit (for Fiscal Year 2007) is now projected to be $205 billion.
- At 1.5% of GDP, this year's deficit is well below the 40-year average of 2.4% of GDP.
- Federal tax receipts are now at 18.8% of GDP, higher than their 40-year historic average.
Of course, there is still a looming long-run fiscal gap. The short-run fiscal picture, however, does not look historically anomalous.