WASHINGTON, March 27 (Xinhua) -- The U.S. Congressional Budget Office (CBO) on Thursday projected that U.S. federal debt held by the public will climb to 107 percent of gross domestic product (GDP) by 2029, exceeding the historical peak it reached immediately after World War II.
In the newly released "The Long-Term Budget Outlook: 2025 to 2055," the CBO said the debt held by the public, boosted by large deficits, reaches its highest level ever in 2029 and then continues to grow, reaching 156 percent of GDP in 2055.
The deficit remains large by historical standards over the next 30 years, reaching 7.3 percent of GDP in 2055. That amount results from rising interest costs and sustained primary deficits, which exclude net outlays for interest, the report said.
Rising interest costs; spending for the major health care programs, particularly Medicare; and spending for Social Security, especially over the next decade, drive the growth in outlays.
Revenues increase over the next few years, largely because certain provisions of the 2017 tax act are scheduled to expire. But President Donald Trump has called for more tax cut measures.
On Wednesday, the CBO estimated that without a debt limit increase, the government's ability to borrow "will probably be exhausted in August or September."
Despite the urgency, politics stands as a major hurdle in U.S. lawmakers' debate over whether to increase the debt ceiling. ■