U.S. National Debt Predicted to Rise an Additional $20 Trillion Over Next 10 Years

The Nonpartisan Congressional Budget Office, (CBO). Wednesday’s release of its annual budget and economic outlook for federal finances forecasts the future 10 years. This project projects that the national deficit will rise to about $20 trillion in a decade.

The CBO baseline budget forecast For the period 2023-2033, the public has $25.716 trillion of debt. It will rise to $46.445 billion in 2033. That’s an increase of $20.729 trillion over 10 years. 

As a percentage, the amount of U.S. gross domestic products (GDP) that is held by the public will rise from 98% in 2023 to 118.2% in 2033. Phillip Swagel, CBO Director, stated that the trend will continue in the following decades based on current budgetary policy. Federal spending would reach 195% of GDP by 2053.

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CBO projects that public debt will rise to $46.4 Trillion in 2033 and $25.7 Trillion in 2023, respectively. This represents a $20.7 trillion increase over the next 10 year. (Fox News)

Debt held by the public consists of all the debt the federal government owes to entities outside the federal government – including individuals, businesses, state and local governments, foreign governments, and the Federal Reserve – and excludes intergovernmental debt. 

The benchmark for the federal gross debt is the Debt limit It has surpassed $31 trillion in the previous year. The expected rise of $19.6 trillion to $52 trillion by 2033 is about 11% according to the CBO. 

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CBO projects that in 2023, the annual budget deficit will rise from $1.41 trillion to $2.851 billion. (istock / iStock)

Gross federal debt is almost all debt owed by federal government. It includes debt owed to the federal government.

The significant increase in national debt is due to annual budget deficits Expected increases in prices will be due to the increasing cost of paying interest on the nation’s debt, which continues to grow. 

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CBO predicts that the annual budget deficit will rise from $1.41 trillion to $2.851 trillion by 2023 to $2.851 trillion by 2033. In the meantime, annual net interest costs will rise from $640 million in 2023 to $1.429 Trillion in 2033.