The Congressional Budget Office (CBO) projects the FY2011 federal budget deficit will be almost $1.5 trillion, about $190 billion higher than FY2010. This deficit increase reflects an expected growth in government outlays (+$252 billion) that exceeds a much smaller increase in revenue (+$66 billion). According to CBO, payments in FY2011 for Social Security, Medicare, and Medicaid, and budgetary expenditures for stimulus programs will be far greater than reductions to payments for Fannie Mae, Freddie Mac and federal deposit insurance. The low expected growth in revenue reflects a continuing slow pace of economic recovery and the effect of the recently-passed compromise tax cut bill. That bill extends current tax cuts for two years and provides a two percent reduction in the payroll tax for social security in 2011. The CBO report also includes deficit estimates through 2021. These estimates show deficits declining significantly in FY2012 and FY2013 and leveling off at an average of about $650 billion through the end of the decade. However, CBO does caution that these much lower deficit estimates may understate what actually happens because their baseline estimates assume a continuation of current law for both expenditures and revenue. For example, CBO’s revenue estimates reflect the expiration of the extended tax cuts after 2012.