The deficit of Federal budget

The federal budget deficit is, quite simply, the gap between the
promises that the president, the Congress, and the two political
parties have made to the people—and their unwillingness to pay
the cost of keeping those promises. The budget deficit is not a big
problem now, and the official projections for the next 10 years
make everything look okay because they show the red ink evaporating.
But those rosy projections assumed the expiration, or sunsetting,
of President George W. Bush’s two big tax cuts. With the
current state of Washington gridlock, it looks like it will be difficult
to find the blend of tax increases and spending cuts that
would turn those rosy deficit projections into reality. And when
Social Security can no longer pay for its annual benefits with its
payroll tax, which is projected to happen in 2019,1 the projected
deficit for future years will expand rapidly. At that point the federal
budget deficit could become disruptive, leading to much
higher interest rates than the nation would otherwise experience
and much slower economic growth than it might otherwise enjoy.