An aging population and ballooning health care costs will continue to drive federal spending well beyond 2030, CBO notes.ĭebt growing toward record level: The national debt topped $22 trillion just two years into Trump’s tenure, and federal debt held by the public is projected to rise to $31.4 trillion at the end of 2030, CBO said. CBO said growth partly reflects a scheduled increase in individual income taxes at the end of 2025.Īt the same time, federal spending is also projected to rise, driven by increased spending for mandatory programs like Social Security and Medicare, in addition to interest on the national debt. The economy’s still strong: CBO projected that economic output will grow 2.2 percent this year, “driving continued job creation and a historically low unemployment rate.” But some factors expected to grow that output “would taper off in later years,” slowing to an average annual rate of 1.7 percent.įor example, the budget agency projects that the growth of consumer spending will level off as the boost from the 2017 tax overhaul diminishes.įederal revenue will increase, but so will spending: In a growing economy, revenues are on track to increase from 16.4 percent of GDP this year to 18 percent of GDP in a decade. Takeaways from the nonpartisan scorekeeper’s latest tally:
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