The group said that “costly legislative and executive actions” have worsened the debt to GDP ratio since CBO’s May estimate
Casey Harper
The Center Square
New budget estimates show that the growth of the national debt is worse than previously thought.
The U.S. Congressional Budget Office released projections in May that the national debt will hit 110% of U.S. Gross Domestic Product by 2032. Now, with interest rates higher and GDP growing more slowly, a leading budget group has released more dire projections.
The Committee for a Responsible Federal Budget raised the alarm, saying that the federal debt will be 116% of GDP in 2032 but could even reach as high as 138% of GDP in 10 years. The group said that “costly legislative and executive actions” have worsened the debt to GDP ratio since CBO’s May estimate.
“Under our updated baseline scenario, which incorporates these factors and also subtracts about $920 billion of borrowing for baseline adjustments related to the infrastructure bill, we find debt would reach a massive 116 percent of GDP by 2032,” the group said in its analysis.
The U.S. Federal Reserve has hiked interest rates to deal with soaring inflation, making all debt more costly, including that held by the federal government.
“Under a more pessimistic (and in many ways realistic) scenario, debt in 2032 would reach 138 percent of GDP, deficits would reach 10.1 percent, and interest would total 4.4 percent of GDP,” the group said. “These projections suggest an unsustainable fiscal trajectory”
The U.S. national debt surpassed $31 trillion last month after surpassing $30 trillion earlier this year. Lawmakers are reportedly mulling new tax breaks at the end of this year as well.
“We are asking lawmakers to take one small step towards fiscal responsibility and agree there should be no new borrowing for the remainder of 2022,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “There is not one single economic justification to borrow rather than pay for any new priorities … it will be good practice for politicians to break their addiction to debt.”
This story was first published by The Center Square.
Also read:
- Vancouver Police release critical incident video from Dec. 28 officer-involved shooting
Vancouver Police Department released a Critical Incident Video related to a December 28 officer-involved shooting while the Office of Independent Investigations continues its review. - Opinion: Transit agencies need accountability not increased state subsidy
Charles Prestrud argues that Washington transit agencies face rising costs and declining ridership due to governance structures that lack public accountability. - Letter: ‘For years, American foreign policy too often felt like a blank check’
Vancouver resident Peter Bracchi argues that the 2025 National Security Strategy marks a long-overdue shift toward clearer priorities, shared responsibility, and interest-based American leadership. - POLL: Are you better off than you were a year ago?
This week’s poll asks readers to reflect on their personal financial situation and whether they feel better off than they were a year ago as economic conditions continue to shift. - Opinion: Does tailgating cause speeding?
Target Zero Manager Doug Dahl examines whether tailgating contributes to speeding and explains why following too closely increases crash risk with little benefit. - Opinion: ‘The Democrats’ part of the bargain’
Clark County Today Editor Ken Vance reflects on a New Year’s Eve encounter and a Bill Maher commentary to assess what he sees as cultural and political changes from the past year. - Free fares on New Year’s Eve is a big hit with C-TRAN riders
C-TRAN’s New Year’s Eve free-fare program provided extended late-night service and a safe transportation option for riders across Clark County just after midnight.
wpDiscuz
