A new Congressional Budget Office report shows the United States national debt will be 90 per cent of the gross domestic product by 2020, which is up 40 per cent from the end of the 2008 fiscal year.
On Thursday, the Congressional Budget Office released a report highlighting that President Barack Obama’s 2011 budget will generate $10 trillion in budget deficits over the next 10 years, which will make the debt 90 per cent of the GDP by 2020, according to the Washington Times.
The recent CBO figure is $1.2 trillion more than the original estimate by the Obama administration. Last month, the Obama administration projected a 10-year deficit of $8.53 trillion in its 2011 budget. However, after analyzing the projected budgets, the CBO reported it will be $9.75 trillion in deficits over the next decade.
CNBC reports that when the President entered office, the federal public debt was $6.3 trillion, which was $56,000 per household but today the debt totals $8.2 trillion, or $72,000 per household. However, the USDebtClock puts the figures at $12.6 trillion, or $115,373 per U.S. taxpayer.
“The proposed budget is woefully insufficient to achieve the president's goal or the important fiscal goal of stabilizing the debt at a reasonable level in the medium and long term,” said Maya McGuiness, President of the bipartisan Committee for a Responsible Federal Budget, reports the United Press International.
McGuiness further added that the level of debt is “extremely problematic.”