US budget deficits to widen, national debt to surge to 156% of GDP, CBO finds

The Non -Partial congress Budget Office (CBO) recently released the long -term budget expectations and showed that the budget deficit on its way to consistency in the coming years, prompting the national debt much higher than the size of the American economy.

The Budget of the Central Bank of Oman expects that the debts that the public maintains as a percentage of GDP (GDP), a measure that economists prefer to compare debts with economic output, is expected to rise from 100 % this year to 156 % of GDP in 2055. This will be 50 percent higher points than the current registry, which has been set in a year 1946 where the United States began post -war.

Growth in the national debt will be expanded through a budget deficit of about 6.2 % of GDP in 2025 to 7.3 % in 2055-much higher than the average of 1995-2024 of 3.9 %.

Federal spending will remain driven by mandatory spending programs led by social security and medical care amid the old age of America. Social security spending is expected to increase from 5.2 % of GDP this year to 6.1 % in 2055, while CBO see medical care spending from 3.1 % to 5.8 % of GDP in 2055.

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CBO found that the main social security funds are due to the exhaustion of their reserves in less than a decade. The Agency’s Age of Age of Age and Survivors will be exploited by 2033, although this will be a year later in 2034 if it is combined with the Secondary Insurance Fund.

When the Social Security Fund is exhausted, it will reduce automatic allocations for the recipient, which CBO estimates will be reduced by 24 % in 2034. As for the sense of proportion, the Social Security Administration noted that the average monthly benefit from January 2025 was 1976 dollars – which will be reduced by $ 474 per month if monthly benefits occurred 24 %.

It is now expected that the hospital insurance fund will be exhausted from Medicare by 2052 after its outlook improved due to the low expected costs and the high revenue expectations, although the expectations are sensitive to economic conditions and are very certain.

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Another main engine to increase spending is net interest expenses, which are expected to increase from 3.2 % of GDP this year to 5.4 % in 2055 with the continued growth of national debt. By 2045, the average interest rate on the national debt is expected to exceed the rate of US economy growth.

The GDP of the United States is expected to grow at slower rates in the coming decades, with a decrease in real gross domestic GDP of inflation from 2.8 % in the past year and 2.1 % in 2025 to 1.4 % in 2055. CBO wrote that “the slowdown in the resulting growth of the slower growth in the size and productivity of the workforce; stems from the increasing stems on a part of Federal acceptance. “

CBO added that the population growth has a “great impact on the economy” and that without migration, it is expected that the residents of the United States will start shrinking in 2033.

The report of the Central Bank of Oman also notes that its expectations are based on its demographic and economic expectations and the previous budget that was issued between November and January 6, and the administrative procedures or judicial decisions that have been taken since then that affect migration, definitions and other areas of politics.

The federal deficit in the budget recorded 1.1 USD in the first 5 months of the fiscal year

The main confidence funds for social security are exhausted in less than a decade, which would reduce benefits by 24 %. (Kevin Lietsch / Getty Images / Getty Images)

Peter J. PGPF (PGPF) that the report of the Central Bank of Oman shows the risks of the US government’s financial path, which can increase the risk of debt crisis and other bad economic results with the growth of the heavier debt burden.

“The risk of a financial crisis – any position in which investors lose confidence in the value of the US government’s debts – will lead to a sudden increase in interest rates and other disturbances.” “The possibility of other negative results will also increase. For example, high inflation forecasts may erode confidence in US dollars as the dominant international reserve.”

The CRFB, a non -partisan budget monitor, warned that “high and increased debts and disabilities have many negative consequences for the budget and economy, including slow income growth, high interest rates and benefits payments on increased risks.

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“The hour is knocking,” said Maya Makinias, president of CRFB. “We need to get rid of this financial distress, do the important work for balance, get our financial house in order, and secure the future of our nation.”