WASHINGTON (Feb 11): The US budget deficit will grow slightly in fiscal 2026 to US$1.853 trillion (RM7.3 trillion), the Congressional Budget Office forecast on Wednesday, showing that on balance, President Donald Trump's economic policies are worsening the country's fiscal picture amid low economic growth. The CBO said that the deficit for fiscal 2026 will be about 5.8% of GDP, about where it was in fiscal 2025, with a deficit of US$1.775 trillion. Trump administration officials have said in recent days that first- quarter 2026 growth could top 6% due to rising investments in factories and artificial intelligence data centres. The fiscal 2026 deficit is about US$100 billion or 8% more in CBO's current projections than it was in the agency's January 2025 projections, and the cumulative deficit over the 2026-2035 period is US$1.4 trillion, or 6% greater. Added revenue from Trump's tariffs will reduce deficits by about US$3 trillion, including economic effects and lower debt payments, CBO said.

Source: The Edge Markets February 11, 2026 15:16 UTC