Last week, the Congressional Budget Office (CBO) released An Update to the Budget and Economic Outlook. The update included the tax cut passed last year and the spending deal that was enacted a few months ago. The outlook was already trending in the wrong direction and this only makes it worse.
The 2018 deficit is projected to be $804 billion, trending upward. The 2017 deficit total was $665 billion, while the 2016 amount was pegged at $585 billion.
In the report, CBO explains that,
The amount by which the government’s outlays exceed its revenues would nearly double in nominal terms over the next several years, rising from $665 billion in 2017 to $1.3 trillion in 2022. The budget deficit would increase more slowly thereafter—to a total of $1.5 trillion in 2028.
They go on to say that the total debt added through 2028 would be nearly $15 trillion with debt held by the public reaching near historic levels.
Both mandatory outlays and interest on the debt are set to grow at an alarming rate. The larger share of spending is going to those programs, while the discretionary outlays are shrinking. The path we are on is not sustainable.
The update to the Budget and Economic Outlook gave us even more evidence about our country’s finances. Fortunately, there are ways to cut defense spending and tools like SpendingTracker.org make it easier to see how Congress is voting. Now, more than ever, we need to move our country toward a more sustainable future.