OMB's long-run projections of Medicare spending are much more optimistic than CBO's
February 16, 2012
SOURCE: Data from the Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2013, February 2012 and the Congressional Budget Office, CBO's 2011 Long-Term Budget Outlook, June 2011. Compiled by PGPF.
The Office of Management and Budget (OMB) projects that Medicare spending as a percentage of gross domestic product (GDP) will rise much more slowly than the Congressional Budget Office expects over the next several decades. Despite that optimistic assumption, however, OMB projects that federal debt would still surpass 90 percent by 2034 under the President’s budget, a threshold beyond which debt can threaten economic growth. If the administration had used less optimistic assumptions, the federal debt would rise to even higher levels than OMB projects.
This chart appeared as a part of PGPF's analysis of the February 2012 report by the Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2013. To read the full report, click here.
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