The bulk of the hurricane-related spending and tax relief will show up in the budget accounts in the current and next fiscal years. Moreover, the total magnitude of the federal response is still unknown, adding to the uncertainty associated with the fiscal outlook. Viewed from a longer-term perspective, the financial position of the U.S. federal budget has oscillated dramatically over the past ten years.
Ten years ago, the federal budget had a deficit that amounted to about 2-1/2 percent of GDP, roughly similar to the current percentage, and forecasts at that time pointed to some widening in this budget gap in future years.