Washington, D.C. – The latest monthly Congressional Budget Office report shows that deficits are still rising, Shai Akabas, fiscal policy director at the Bipartisan Policy Center, said.
After accounting for timing shifts in payments, CBO finds that the deficit for the first quarter of Fiscal Year 2017 increased by $58 billion from the same period in the prior year.
“We can’t afford to lose sight of the fiscal impacts of these policies,” Akabas said
“Today’s report reaffirms that deficits are once again on the rise. With the major issues of healthcare, tax, and infrastructure all on the congressional agenda, we can’t afford to lose sight of the fiscal impacts of these policies,” Akabas said.
Net interest on the public debt grew by 21 percent in the first quarter, accounting for $14 billion of the total deficit increase.
“The initial signs of rising interest payments are ominous, as they point to the additional burden that taxpayers will have to bear if interest rates continue to rise,” Akabas said.