The Congressional Budget Office projects the total federal deficits to drop from 5.8 percent of gross domestic product in 2023 to 5 percent by 2027 and then increase steadily over the next three decades, hitting 10 percent of GDP by 2053.
CBO said Wednesday it expects federal debt held by the public to rise from 98 percent of GDP by the end of 2023 to 107 percent of GDP by 2029 and 181 percent by 2053.
According to the agency, such rising debt could impact economic growth, increase interest payments to foreign debt holders and pose major risks to the economic and fiscal outlook.
CBO noted that revenues are projected to decline from 19.6 percent of GDP in 2022 to 18.4 percent in 2023 and then climb to 19.1 percent of GDP in 2053.
The report projects federal spending to grow from 24 percent of GDP in 2023 to 29 percent of GDP in 2053.
CBO said large primary deficits and rising interest rates cause net outlays for interest to triple in relation to GDP over the next 30 years.
According to the report, spending on Social Security and major health programs significantly increases federal outlays over the next three decades.
