Remember how Obama was kinda-sorta going to get the budget deficits under control at some point in the future? Well, after trading ended today the government released new budget deficit numbers.
President Barack Obama’s budget proposal would generate bigger deficits than advertised every year of the next decade, with the shortfalls totaling $1.2 trillion more than the administration estimated, according to the Congressional Budget Office.
The nonpartisan agency said today the deficit will remain above 4 percent of the nation’s gross domestic product for the foreseeable future while the publicly held debt will zoom to $20.3 trillion, amounting to 90 percent of GDP by 2020. By then, interest payments on the debt will have quadrupled to more than $900 billion annually, the report said.
Economists generally consider deficits topping 3 percent of GDP to be unsustainable because that means government debt is growing faster than the ability to pay back the money.
The administration projected last month the deficit would shrink to as low as 3.6 percent of GDP, with the 10-year shortfall totaling $8.5 trillion. It foresees the debt growing to 77 percent of GDP in 2020.