The deficit has been reduced by $2.1 trillion so far through enacted measures. However, the debt ratio is projected to rise to 79% of GDP by 2022 without further actions. Healthcare costs, especially for Medicare and Medicaid, have been the main driver of rising deficits and are projected to increase to over 12% of GDP by 2022 if changes are not made.

1. Deficit Reduction Enacted So Far
$tn
Source: CRFB

2. Debt Ratios
% of GDP
90%
79%
2012 Ratio: 72.8%
72%
65%
Source: CRFB, Steve Rattner estimates

3. Healthcare Costs Driving Deficits
% of GDP
12.7%
6.2%
6.3%
Source: CBO, Medicare Trustees 2012 Report