WASHINGTON, March 30 U.S. debt held by the
public will balloon to 150 percent of economic output by 2047
unless tax and spending laws are changed, the Congressional
Budget Office said on Thursday, far exceeding the record level
just after World War II.
The new projections show steeper 30-year debt growth than
last year's long-term forecast by the non-partisan budget
analysis agency, and could make it harder for some members of
Congress to support a tax reform plan that is partly financed
with higher deficits.
Last year, the CBO estimated U.S. public debt would grow to
141 percent of gross domestic product by 2046, while the record
was 106 percent of GDP in 1946. That level would be reached in
2035, the CBO said.
Under this year's projection, CBO predicts public debt for
2017 to be about 77 percent of GDP, growing to 89 percent in
2027 and 113 percent in 2037.
The new forecasts assume that the Affordable Care Act, the
healthcare law known as Obamacare that House Republicans failed
to replace last week, stays in place for the long term.
The projected debt growth reflects CBO's estimates of the
rising costs of caring for a growing population of people over
65, growth in interest costs, and assumptions of slower economic
growth due to reduced assumptions about productivity gains
(Reporting by David Lawder; Editing by Chizu Nomiyama)