Oct. 15, 2018: October 15, 2018: Joint Treasury-OMB Statement calculates final FY 2018 budget deficit as $779 billion, $113 billion more than the prior year. (FY 2018 ended on September 30.)
Excerpt: Why Are Projected Deficits Rising?
…over the next 30 years, spending as a share of GDP would increase for Social Security, the major health care programs (primarily Medicare), and interest on the government’s debt. In CBO’s projections, most of the spending growth for Social Security and Medicare results from the aging of the population: As members of the baby-boom generation (people born between 1946 and 1964) age and as life expectancy continues to rise, the percentage of the population age 65 or older will grow sharply, boosting the number of beneficiaries of those programs. Growth in spending on Medicare and the other major health care programs is also driven by rising health care costs per person. In addition, the federal government’s net interest costs are projected to climb sharply as a percentage of GDP as interest rates rise from their currently low levels and as debt accumulates. (emphasis added)
Debt Stabilization Plans and Options:
- 2016: CBO nonpartisan Spending and Revenue Options for Reducing the Deficit: 2017-2026
- 2010: Domenici-Rivlin Bipartisan Plan: Restoring America’s Future
- 2010: Simpson-Bowles Plan: The National Commission on Fiscal Responsibility and Reform
Source: CBO, April 2018