US Federal Debt In 2020 To Equal 81% Of Annual GDP, 98% In 2030 - Budget Office

Cumulative budget deficits projected over the next ten years will push the US national debt to $31.4 trillion, nearly 100 percent of the nation's annual gross domestic (GDP), the Congressional Budget Office (CBO) said in a report on Thursday

WASHINGTON (UrduPoint News / Sputnik - 13th February, 2020) Cumulative budget deficits projected over the next ten years will push the US national debt to $31.4 trillion, nearly 100 percent of the nation's annual gross domestic (GDP), the Congressional Budget Office (CBO) said in a report on Thursday.

"In CBO's projections, Federal debt held by the public reaches $17.9 trillion at the end of 2020. That amount equals 81 percent of GDP - more than twice its average over the past 50 years. By 2030, debt is projected to reach $31.4 trillion, or 98 percent of GDP, a larger percentage than at any time since just after World War II," the report said.

The national - or public - debt is the result of the federal government borrowing money to cover running budget deficits. The latter is the difference between what the government spends and the revenue it takes in.

The national debt in 2030 is $160 billion higher than projected by the CBO last August, the report noted.

Most of the red ink comes from the Social Security retirement income system, which automatically increases each year under current law, without any congressional action, according to the report.

The report also projected that US economy will grow by 2.2 percent this year.