WASHINGTON, D.C. – Today, the Congressional Budget Office (CBO) released its Budget and Economic Outlook, which projects a $468 billion deficit for fiscal year 2015. Annual deficits will stop falling and start rising again in 2017, reaching $1.1 trillion in 2025. According to the CBO, these deficits will add another $9.5 trillion to the national debt by the end of the decade – bringing the total to over $27 trillion
In response, House Budget Committee Chairman Tom Price, M.D. (GA-06) issued the following statement:
“Today’s CBO report is a sober reminder of the fiscal and economic challenges we face as a nation. If nothing is done, we will continue down an unsustainable path full of rising annual deficits that will add to an already $18 trillion debt. Our vital health and retirement programs will continue to grow further toward insolvency. Perhaps most disturbing is the projected steady decline in economic growth. This ‘new normal’ is unacceptable, and it will mean less opportunity for American families and job creators now and in the years to come.“
“There’s no reason it has to be this way. With innovative thinking, real accountability, and more efficient and effective policies, we can solve our fiscal challenges while restoring strength and confidence to our economy. If we commit ourselves to advancing serious solutions and focus on real results, not empty promises, we can stop the nation from drowning further in debt. In doing so, we will lay the foundation for a healthy economy that can benefit all Americans.”
CBO’s Key Findings:
• Real GDP growth will average just 2.3 percent annually over the next 10 years – below the historical average of 3.3 percent
• Annual deficits are projected to begin rising again and will climb to $1.1 trillion by 2025
• Debt held by the public as a percentage of the economy will remain at an elevated level, growing to 79 percent by the end of the decade.
• Interest owed on the national debt will exceed $5.6 trillion over the next 10 years.
• Spending on Social Security, Medicare, and Medicaid will each nearly double over the next decade.
Read the report here.