Congressional Budget Office Projections Tell the Tale
The Congressional Budget Office released new projections through 2088. They tell the tale of what increasing federal debt obligations and the related interest mean to the budget. In effect, interest expense becomes the second highest budget item after healthcare programs* starting in 2050. Interest expense was only $220 billion in FY2012 or 6% of the budget. In the Congressional Budget Office projections, interest expense eats up 10% of the budget by 2030, 20% by 2060 and over 30% by 2088. As we have seen with the recent budget compromise in December 2013, discretionary programs such as defense, food stamps, and medical research take the brunt of cuts as the budget is brought more into line. Interest expense on the Federal Debt could eliminate most of these discretionary programs completely in the future unless action is taken. The deficit needs to be resolved now with cuts in both entitlements and discretionary programs and increases in taxes and user fees. The President and Congress must act. If they do not, be very afraid for our future and that of our children and grandchildren.
Harry Pukay-Martin
*Medicaid, Medicare, the Children’s Health Insurance Program-CHIP, and new subsidies to individuals from Obamacare
