“We must course correct as economic security is key to our national security”
Rep. Josh Brecheen (R, OK Dist. 2) issued the following statement after the nonpartisan Congressional Budget Office (CBO) released its Budget and Economic Outlook report for FY2023 to FY2033.
“These numbers are a siren, warning the American people to get our fiscal house in order,” said Rep. Brecheen.
“The CBO is projecting that our national debt will increase by an additional $22 trillion over the next 10 years with average annual deficits expected to be $2 trillion. At our current trajectory, we will be spending almost $3 trillion above what we bring in revenue at the end of this 10-year window and our annual interest payments on the debt will exceed total spending on national defense. We must course correct as economic security is key to our national security,” Rep. Brecheen said.
Key Facts from the Report:
• FY 2023 Deficit: This year’s deficit is projected to be $1.4 trillion, making it the fourth highest figure in American history. The FY 2023 deficit is equivalent to 5.4 percent of GDP, well above the 50-year average of 3.6 percent.
• Interest Rates: The true cost increase for interest payments on the debt will be $183 billion above the prior year and will continue to grow at an alarming pace. Almost one-fifth of a trillion dollars will be lost to annual interest payment increases spurred on by inflationary consequences. The projected interest rate on 10-year Treasury notes for 2023 has increased from 1.5 percent when President Biden took office to 3.9 percent in CBO’s latest projection, compared to 3.0 percent in 2022. The 10-year average interest rate projection is 3.8 percent.
• Deficit Projections: Our annual deficits will double within ten years. The annual deficit projection will be $2.9 trillion (7.3 percent of GDP) in 2033.
• Debt Projections: Gross federal debt is projected to increase from $30.8 trillion (123.3 percent of GDP) in 2022 to $52.0 trillion (132.3 percent of GDP) in 2033.
• Spending Projections: Annual spending is projected to be $6.2 trillion (23.7 percent of GDP) in 2023. Annual spending is projected to grow to $9.9 trillion (25.3 percent of GDP) in 2033. Over the 2024-2033 period, spending is projected to total $80.0 trillion.
• Mandatory Spending: Projected to increase from $3.8 trillion (14.6 percent of GDP) in 2023 to $6.1 trillion (15.6 percent of GDP) in 2033. Over ten years, mandatory spending is projected to amount to $48.2 trillion.