Last week, the nonpartisan Congressional Budget Office (CBO) released a summary of its annual Budget and Economic Outlook. This report outlined the nation’s fiscal outlook for the next 10 years.
The report received significant news coverage, highlighting CBO’s finding that in 2016, “the federal budget deficit will increase, in relation to the size of the economy, for the first time since 2009.” Moreover, CBO projected that federal debt will rise to 86% of gross domestic product (GDP) in 2026 — double its 50-year average and higher than at any point since just after WWII.
There was a range of coverage and analysis looking at what this news means for our nation’s long-term fiscal outlook:
There is still time to act. The Peterson Foundation points out that “now that the economy is stronger, we have the opportunity to put in place sensible reforms that will put our long-term fiscal trajectory on a sustainable path."
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