Statement from the Peterson Foundation on CBO’s Budget and Economic Outlook
Statement from the Peterson Foundation on CBO’s Budget and Economic Outlook
NEW YORK — Michael A. Peterson, President and COO of the Peter G. Peterson Foundation, released the following statement as the Congressional Budget Office released its Budget and Economic Outlook for 2014-2024:
“This report makes clear that the recent improvement in deficits will be short-lived unless we get back to work on fiscal solutions. CBO projects that our deficits will begin rising again within just 2 years, and will grow even more rapidly beyond the 10-year window. CBO estimates that interest costs alone will be a staggering $5.8 trillion over the next 10 years, and become the third largest ‘program’ in the federal budget by 2021. To solve this problem for the long term, we must address the fundamental drivers of our debt, which are high and rising health care costs, an aging population, and an inadequate tax system. Putting our long-term debt on a sustainable path will build confidence today, and ensure economic opportunity and prosperity for future generations.”
For the full CBO report, click here.
Further Reading
National Debt Projected to Hit 175% GDP; Interest Totals $99 Trillion
Compared with the previous 30-year projections, spending will be higher, revenues lower, interest rates and interest payments elevated, and the national debt significantly larger.
Federal Healthcare Costs on Track to Reach $3.1 Trillion by 2036
Federal healthcare programs are among the fastest-growing drivers of federal spending, and their continued growth will put significant upward pressure on the national debt.
Quarterly Treasury Refunding Statement: Higher Borrowing Compared to Last Year
Key highlights from the most recent Quarterly Refunding include an increase in anticipated borrowing of $249 billion compared to the same period in the previous year.