Peterson Statement on CBO 10-Year Budget and Economic Outlook

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of the Congressional Budget Office’s updated 10-year Budget and Economic Outlook:
“This new report provides the latest evidence that our nation’s fiscal condition has worsened significantly since the pandemic began, and will need to be addressed once we’re through the COVID crisis.
“We continue to face very serious public health and economic challenges, and defeating the virus and helping our nation through this devastating period is our nation’s top priority. Lawmakers should continue to pursue effective stimulus and relief programs that are targeted to the needs of the moment, but CBO’s report also makes clear that we will need to return attention to our fiscal outlook once the crisis has passed.
“The pandemic has rapidly accelerated our fiscal challenges, but we must remember that America was already on a fiscally irresponsible path, with permanent, trillion-dollar deficits into the future. The structural drivers of our rising debt existed before COVID, and will remain once COVID is gone.
“If we can tackle a global pandemic, surely we can figure out a way to make the basic budget decisions that are necessary for a more secure and prepared America. Addressing our nation’s unsustainable fiscal outlook will help ensure a stronger and more resilient economy, and help build a brighter future for the next generation.”
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Further Reading
National Debt Projected to Hit 175% GDP; Interest Totals $99 Trillion
Compared with the previous 30-year projections, spending will be higher, revenues lower, interest rates and interest payments elevated, and the national debt significantly larger.
Federal Healthcare Costs on Track to Reach $3.1 Trillion by 2036
Federal healthcare programs are among the fastest-growing drivers of federal spending, and their continued growth will put significant upward pressure on the national debt.
Quarterly Treasury Refunding Statement: Higher Borrowing Compared to Last Year
Key highlights from the most recent Quarterly Refunding include an increase in anticipated borrowing of $249 billion compared to the same period in the previous year.