CBO Report Shows Growing Problem of Government Spending, Rising Debt
(Arlington, VA) - This week the Congressional Budget Office (CBO) released The Budget and Economic Outlook: 2019-2029, which includes updates on the government’s fiscal situation going forward. According to this update, government spending will climb from 20.8 percent of Gross Domestic Product (GDP) in 2019 to 22.7 percent in 2029 – with demographics of baby boomers retiring and the rising cost of health care contributing significantly to spending for programs such as Social Security and Medicare. As government spending increases – from $4.4 trillion in 2019 to $7.0 trillion in 2029 – the annual deficit is projected to rise from $897 billion to $1.37 trillion. The total new government debt from 2019-2029 is projected to approach $13 trillion.
Daniel Garza, President of The LIBRE Initiative, released the following statement:
“This report from the CBO is only the latest warning about the danger of out of control government spending and debt to the nation’s long-term fiscal health. The problem is clear: policymakers in Washington have been unwilling to set priorities and make tough choices about where to cut wasteful and unnecessary spending. And the cost of this inaction is clear: slower economic growth, higher taxes on our children and grandchildren, and a growing difficultly in addressing genuine government priorities, as the interest we pay on debt consumes more and more of the federal budget. It is far past time to act – to limit government spending and identify where cuts can be made.”