A Congressional Budget Office report estimates national debt will climb to 74 percent of the U.S. gross domestic product this year, more than twice the debt level held in 2007 and the most since 1950.
CBO said Monday it also forecasts the federal budget deficit to decrease from $483 billion in fiscal 2014 to $468 billion in fiscal 2015, which equals $2.6 percent of the total economic output.
Annual budget shortfalls are projected to remain stable through 2018 and then rise steadily to reach $1.1 trillion by fiscal 2025, according to CBO.
The agency expects overall government spending to be more than 22 percent of GDP in 2025 due to increasing retirement and healthcare costs as well as rising interest rates on federal debt.
CBO sees tax revenues at around 18 percent of GDP over the next 10 years and projects inflation rate to hit the 2 percent mark in 2017 and beyond.