The Congressional Budget Office (CBO) has released updated projections that reinforce the need for presidential candidates to explain how they would curb the federal debt over the next decade.
“Even with declining short-term deficits and slowing health care costs, Washington clearly remains on an unsustainable fiscal path,” says Robert L. Bixby, Concord’s executive director. “The federal debt is already quite high by historical standards, and the new projections confirm that Washington must make fundamental policy changes to avoid adding $7 trillion — and perhaps much more — to the federal debt over the next 10 years. The presidential candidates need to let voters know what they intend to do about that if elected.”
The CBO report offers new 10-year baseline projections for the nation’s spending programs and revenue collection but says the overall outlook “does not differ substantially” from March projections.
The new report again highlights growing pressures on the budget from an aging population, rising health care costs, and soaring interest payments that are expected in the years ahead.
CBO also released a report last week saying that the Treasury’s special measures to avoid breaching the federal debt limit would be exhausted between mid-November and early December. Concord urges Congress to avoid unnecessary brinksmanship by raising the debt limit sooner rather than later.