CBO: Federal government's debt on track to exceed size of U.S. economy

By the numbers: The CBO projects the federal budget deficit will hit $2.3 trillion in 2021, and the country's debt will reach 102% of the GDP, a slight increase from last year.

• Yes, but: This year's annual federal deficit — the gap between government spending and collected tax revenue — is expected to be nearly $900 billion less than 2020's, according to the nonpartisan agency.

What they're saying: "At 10.3 percent of gross domestic product (GDP), the [federal budget] deficit in 2021 would be the second largest since 1945, exceeded only by the 14.9 percent shortfall recorded last year," the CBO said in its report.

• "Those deficits, which were already projected to be large by historical standards before the onset of the 2020–2021 coronavirus pandemic, have widened significantly as a result of the economic disruption caused by the pandemic and the enactment of legislation in response."

What to watch: Without additional spending or tax cuts, the federal debt is expected to increase to 107% of GDP by 2031 — an all-time high in American history, per the CBO.

Go deeper: The stimulus debate: Is it too big?