If current laws governing taxes and spending generally remained unchanged, the federal budget deficit would increase significantly in relation to gross domestic product over the next 30 years, CBO projects. That increase would stem from high and rising interest costs and from large primary deficits (that is, deficits excluding net outlays for interest). Growing total deficits would push federal debt held by the public far beyond any previously recorded level. Such large and growing debt would have significant economic and financial consequences. Among its other effects, it would slow economic growth, drive up interest payments to foreign holders of U.S. debt, heighten the risk of a fiscal crisis, increase the likelihood of other adverse outcomes, and make the nation’s fiscal position more vulnerable to an increase in interest rates.

Report  |  By the Numbers (PDF)