Highlights of the official ten-year budget and economic outlook from the Congressional Budget Office.

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The Campaign to Fix the Debt
Highlights of the CBO Budget and Economic Outlook: 2016 to 2026
The January 2016 budget and economic outlook for the next decade from the non-partisan
Congressional Budget Office (CBO) shows deficits and debt rising even faster. The new figures
have huge implications for policymakers and those seeking office. Below are key findings.
The Era of Declining Deficits is Over
 This year’s budget deficit is forecast to be $544 billion, $105 billion higher than last year.
And deficits are projected to trend upwards.
 Trillion-dollar deficits will return by 2022, and the deficit will reach $1.37 trillion by 2026.
 Deficits will nearly double in the next decade from 2.5 percent of the economy in 2015 to
4.9 percent by 2026.
Public Debt as a Percentage of the Economy
The Already Unsustainable Debt Path Is Now Much Worse
 Debt held by the public will grow by more than $10 trillion over the next decade, from
$13.1 trillion last year to $23.8 trillion in 2026.
 As a share of the economy, debt will grow from 74 percent today to 86 percent in 2026.
That is more than twice the 50-year debt average of 39 percent.
 Last year, debt was forecast to be 77 percent of the economy in 2025. It now is expected
to reach 84 percent that year.
 The growth in the long-term debt will be largely driven by rising health care costs and an
aging population. Nearly half of the projected $2.5 trillion increase in total spending from
2016 to 2026 is for Social Security and Medicare. Interest on the debt, the fastest growing
part of the budget, will more than double over the decade, growing from 1.3 percent of
the economy in 2015 to 3 percent in 2026.
Irresponsibility in Washington Is a Chief Culprit in the Worsened Outlook
 Last year, Congress added over $1 trillion to the projected debt in 2026 by passing unpaid-
for tax breaks and Medicare spending increases.
 Failure to follow the “pay-as-you-go” law that requires paying for new policies is responsible
for roughly half of the deterioration of the country’s fiscal outlook from last year.
 If policymakers continue to act irresponsibly, instead of taking positive action to get the
debt under control, the debt projections will be much worse. This could add an additional
$1.4 trillion to the debt, making it reach 91 percent of the economy by 2026.
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2010 2014 2018 2022 2026
January 2016 Baseline
August 2015 Baseline