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Many factors contribute to the long-term outlook for the U.S. economy and budget, but there are two major drivers of spending: demographics and rising healthcare costs.
CBO projects that federal debt will remain at historically high levels over the next decade under current laws and warns that such high levels of debt could harm the economy.
Budget Explainer: What's at Stake with Discretionary Spending Cuts
Discover why our fiscal health and economic strength are so closely tied, and why it is important to get the deficit under control and work toward a balanced budget.
Although President Obama’s budget keeps the debt from rising as a share of the economy over the next 10 years, it does not sufficiently address the key drivers of our long-term unsustainable debt.
How do the House Budget and the President’s Budget differ?
The nonpartisan Congressional Budget Office projects that the federal debt could reach 175% of GDP by 2040.