WASHINGTON: Federal debt will explode over next 10 years, CBO says | Economy | McClatchy DCThe federal debt is set to explode over the next decade even as the budget deficit is projected to reach its lowest level of the Obama presidency, the Congressional Budget Office said Monday.
The annual deficit should total $468 billion for the 2015 fiscal year, which will end Sept. 30, the nonpartisan budget office said. Thatís a tad better than the $483 billion in fiscal 2014, and it amounts to about 2.6 percent of the overall economy, the smallest percentage since 2007 and just a hair under the 50-year average.
The improving deficit numbers are temporary, however. Budget deficits are projected to begin going up again in 2018, and to nearly double by 2024 as retiring baby boomers strain the health and retirement systems, the economy grows more slowly and interest on the nationís outstanding debt rises.
By 2025, the annual budget deficit is forecast to hit 4 percent of the overall economy, much higher than the 2.7 percent historical average.
So, it seems that it's only a matter of time before these low deficit numbers disappear.
Personally, I am not hugely worried as as long as our economy can keep up and we can make the minimum payments, we'll be fine.