Statement on the President’s Budget from the Peterson Foundation
NEW YORK — Michael A. Peterson, President and COO of the Peter G. Peterson Foundation, commented today following the release of the President’s FY2015 Budget:
”While near-term deficits are lower, our long-term debt is still on an unsustainable path that damages our economy, today and in the future.
“Unfortunately, this budget does not address the fundamental drivers of our long-term debt, and it’s particularly disappointing that a credible structural reform from last year’s budget — chained CPI — has been removed. An election year should not be an excuse for either party to back away from the difficult, but necessary work of fiscal reform.
“Under this budget, our nation will spend a staggering $5.6 trillion on interest costs alone over the next 10 years, and interest will become the third largest federal ‘program’ by 2020. On our current path, we will soon spend more on interest than we do on all federal investment in R&D, education, and non-defense infrastructure, combined. America cannot become a nation that spends more on its past than on its future.
“Stabilizing the debt over the long term is a key part of any sound fiscal policy and viable economic strategy for America. We need to resolve our nation’s fiscal challenges in order to protect critically important health and retirement programs, invest in our own future, and ensure economic growth and opportunity for future generations.”
For the President’s Budget for Fiscal Year 2015, click here. For the Peterson Foundation’s analysis of the President’s Budget, click here.
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.