WASHINGTON -- The Concord Coalition said today that updated projections by the Congressional Budget Office (CBO) underscore the need for President Trump and Congress to turn their attention to the worsening budget outlook.
“The CBO’s latest projections, while not surprising, are an important reminder that the federal budget is on an unsustainable path and that policymakers have no plans to deal with this problem. The cost of procrastination shows up as interest on the debt which more than doubles as a share of the economy over the next 10 years and would cost more than all non-defense appropriations put together by 2025,” said Concord Executive Director Robert L. Bixby.
The new report updates the budget and economic projections that the CBO released in January for the next 10 years, based on current law. In addition, the CBO in April issued a report on the long-term outlook that showed the country’s budget problems steadily deteriorating over the next 30 years.
The latest CBO report projects sharply rising deficits over the next 10 years, exceeding $1 trillion annually by 2022 and totaling $10.1 trillion over the next 10 years. Medicare, Medicaid and other health care programs along with Social Security account for all of the non-interest spending growth.
Bixby also expressed concern over the breakdown of this year’s congressional budget process.
“It is time for Congress to produce a budget resolution. The next fiscal year begins in just three months and there is no plan for avoiding another government or debt limit crisis. Health care and tax reform are important issues but because they have large potential fiscal impacts they should be debated within the context of a budget,” Bixby said.