9/1/2023 0 Comments Us budget deficit 2014![]() ![]() Social Security will also face a reckoning as its trust fund will be unable to pay out full benefits within a decade.īut some budget experts saw the deal as more focused on optics than sustainability. Goldwein said he's optimistic that leaders in both parties will find ways to reduce the growth in spending for health care programs. By contrast, discretionary spending was 6.5% of gross domestic product last year and was already projected to fall to 6% within 10 years. gross domestic product, and the CBO expects it will grow to 15.6% by 2023. That category is equal in size to 14% of U.S. Mandatory spending - which includes Social Security, Medicare and Medicaid - already account for the majority of government spending. Lawmakers know there are difficult choices ahead and that the only way through them likely involves some combination of deep spending cuts, broad tax hikes and major changes to the retirement income and health care programs that consume an ever-growing share of federal spending. “The question is, can they take the next step after that?” “You should think of this as one step,” said Marc Goldwein, senior vice president at the Committee for a Responsible Federal Budget. It also means the agreement finalized on Sunday keeps the risk of ever-escalating debt on the table, setting up the possibility of another bruising battle when the debt limit needs to be raised again in 2025. That omission reflects the politics around two popular programs as Democrats and Republicans prepare for next year's presidential election. But that sum is too modest to fully offset the growing costs of Social Security, Medicare and Medicaid.īoth Biden and McCarthy ruled out any cuts to Social Security and Medicare, two programs that benefit older voters, before their teams even began their budget talks. The Congressional Budget Office said Tuesday that the agreement would reduce spending by $1.3 trillion and interest payments by $188 billion over 10 years. The projections are a sign that the two-year truce between President Joe Biden and House Speaker Kevin McCarthy, R-Calif., might be only a pause before a far more wrenching set of showdowns over the federal budget. government's deficits are still on course to keep climbing to record levels over the next few decades. WASHINGTON - Even with the new spending restraints in the debt limit deal that cut borrowing by $1.5 trillion, the U.S. ![]()
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