Washington, D.C.– The new Congressional Budget Office projections show that federal debt remains on an unsustainable long-term growth trajectory with no signs of abating, Shai Akabas, fiscal policy director at the Bipartisan Policy Center, said.
As it has consistently found for the past several years, CBO’s projections show publicly held federal debt hitting record levels over the long term, reaching 150 percent of the size of the economy by 2047.
CBO’s findings highlight that addressing the long-term debt should be a priority for Congress as it debates the federal government’s 2017 and 2018 budgets.
“CBO’s findings highlight that addressing the long-term debt should be a priority for Congress as it debates the federal government’s 2017 and 2018 budgets,” Akabas said.
Growth in federal revenues over the long term continues to be insufficient to pay for increases in federal health care costs and interest on the national debt, which together exceed 50 percent of federal spending by the end of CBO’s projections. CBO also notes that a growing debt burden could negatively affect U.S. economic growth.
“Fiscal responsibility is essential for maintaining the long-term health of the economy,” Akabas said.