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Everything You Wanted to Know About the US Budget Deficit and Debt But Were Afraid to Ask
NIESR
2024.05.14
The US Treasury sees fiscal policy as unsustainable (US Department ofthe Treasury, n.d.). The Government Accountability Office (GAO) and Congressional Budget Office (CBO) agree. The independent CBO projects the 2028 debt-to-GDP ratio matching that afterWorld WarII and then going far higher (figure A1). The 2023/24 budget deficit is projected at 5.6 per cent of GDP - exceptionally large for an economy at full employment (figure A2).