The document projects that federal deficits will rise between 2014 and 2024 according to CBO estimates, with discretionary spending declining as a percentage of GDP as war spending is drawn down. Medicare costs are also projected to moderate slightly as a percentage of GDP over this period.

1. Note: Figures are adjusted for war spending drawdown
Source: CBO Alternative Fiscal Scenario, July 2014
In $bn
Deficits Projected To Rise

2. Discretionary Spending Getting Squeezed
% of GDP
Note: Discretionary spending is adjusted for war spending drawdown
Source: CBO
5.9
5.6
4.9

3. Source: CBO Alternative Fiscal Scenario, July 2014
Medicare Costs Moderating
% of GDP
4.7%
5.2%