The President’s Budget Proposals Will Lead the Federal Debt to Approach 200 Percent of GDP Over the Next 70 Years
The President’s Budget Proposals Will Lead the Federal Debt to Approach 200 Percent of GDP Over the Next 70 Years
SOURCE: Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2013, Analytical Perspectives
The President’s budget stabilizes the debt only in the short-term. If all of the proposals in the budget were adopted, government debt would still soar to unsustainable levels in the long run, even under the optimistic assumptions used in the administration’s long-run projections. Under less optimistic assumptions, debt would grow even faster. The President’s long-run budget projections assume that discretionary spending remains well below its 30-year historical average and that the growth of health care spending will slow significantly.
Download OMB’s Long-Term Budget Outlook
Download OMB’s Long-Term Budget Projections
Click here to read Michael Peterson’s statement on President Obama’s Budget.
Click here to read Michael Peterson’s op-ed in Politico.
Further Reading
Infographic: The Facts About U.S. Defense Spending
National security is both a vital priority and a significant part of the federal budget.
What Is Budget Reconciliation?
The reconciliation process avoids the potential need to gather 60 votes to end debate and, therefore, allows the Senate to adopt legislation with a simple majority.
Budget Basics: National Defense
The national defense budget funds a wide range of activities and represents a significant share of overall federal spending.