Budget deal cuts deficit by $85 billion: Congressional Budget Office

Congressional Budget office claimed that the bipartisan budget agreement will reduce the federal deficit by $85 billion over 10 years.

Congressional Budget Office found that the mix of spending cuts, new revenues and policy changes will decrease spending by $78 billion and bring in $7 billion in new revenues by 2023, CBO. The deficit reduction will, in part help pay for some new spending.

Congressionally appropriated spending will increase by about $48 billion combined in 2014 and 2015 and total $62 billion over the next 10 years when compared to current spending caps enforced by the 2011 Budget Control Act, a favorite policy of many conservatives in Congress.

One of the largest drivers of the bill’s deficit reduction will be an increase in aviation security fees, which would cut the deficit by more than $12 billion over the next 10 years.

Bureau Report