In next decade, 84% of federal spending growth comes from health, Social Security, interest.
“Spending on Social Security will grow from $1.5 trillion this year to $2.5 trillion by 2034, while spending on health care will grow from $1.6 trillion to $2.8 trillion,” a Committee for a Responsible Federal Budget analysis found. “Net interest costs will more than double from $870 billion this year to $1.6 trillion by 2034, after costs nearly doubled between 2020 and 2023. Interest on the debt is the fastest growing part of the budget and will be the second largest government expenditure this year, surpassing both defense and Medicare.”
The CRFB noted that “budget deficits are projected to grow from $1.7 trillion in Fiscal Year (FY) 2023 to $2.6 trillion by 2034, according to the Congressional Budget Office’s (CBO) latest projections.”
The organization issued a strong warning about the growth of the national debt over the next 10 years.
“As a result of this rapid spending growth alongside revenue that fails to keep up, the national debt will exceed its record as a share of the economy in just four years,” the group wrote in the analysis.
We are at the tipping point where the entire federal revenue is consumed by entitlements and debt service.