Congressional Budget Office (CBO) Director Dr. Douglas Elmendorf appears before the Senate Budget Committee Tuesday to answer questions about the CBO’s "Budget and Economic Outlook" report.
In the CBO's report, released last week, the agency estimates that the deficit will fall below $1 trillion in 2013. The last time the deficit was less than $1 trillion was five years ago.
These estimates assume that the spending cuts scheduled for next month, known as sequestration, will take effect. The report notes that these spending cuts will likely lead to reduced consumer and government spending, at least temporarily.
The report also estimates the U.S. economy will grow by 1.4 percent this year.