CBO: Reducing the Deficit

“…[T]he federal government’s debt has increased dramatically in the past few years and when large annual budget deficits are projected to continue indefinitely under current laws or policies. If current laws remain unchanged, deficits will total $7 trillion over the next 10 years, the Congressional Budget Office (CBO) projects; if certain policies that are scheduled to expire under current law are extended instead, deficits may be much larger. Beyond the coming decade, the aging of the U.S. population and rising health care costs will put increasing pressure on the budget. If federal debt continues to expand faster than the economy—as it has since 2007— the growth of people’s income will slow, the share of federal spending devoted to paying interest on the debt will rise more quickly, and the risk of a fiscal crisis will increase.”

See, the Congressional Budget Office’s Report, Reducing the Deficit: Spending and Revenue Options, March 2011.

The Report addresses topics including:

• Mandatory Spending Options
• Discretionary Spending Options
• Revenue Options
• Options that would Increase the Deficit
• Deficit Reduction Options with Smaller Budgetary Effects
• Options by Budget Function
• Options by Major Program or Category