The Congressional Budget Office has estimated that persistent U.S. budget deficits will double the U.S. federal debt over the next 30 years.
These estimates do not include President Joe Biden’s proposed $1.9 trillion coronavirus bailout package. Since the 2008 financial crisis and pandemic, the government has relied heavily on loans and low interest rates to help the ailing economy. But as the economy is expected to recover, the administration predicts interest rates will rise and spending on programs such as Social Security and Medicare will increase.
Excluding the Biden bailout plan, the annual budget deficit would be 10.3 percent of gross domestic product this year, which is the size of the overall U.S. economy. The annual deficit as a percentage of GDP will shrink over the next decade, and then grow over the next decades to 13.3% in 2051.
All of this will increase the U.S. government’s debt burden. Experts estimate that by 2051 the accumulated debt will rise to 202% of GDP.