National Debt Set to Hit Historic Levels Soon

WASHINGTON, DC – According to a new study from the U.S. Government Accountability Office (GAO), the government’s public debt will reach 107 percent of gross domestic product (GDP) by the end of 2023, its highest point in history. GAO has previously reported that a long-term plan is needed to put the government on a sustainable fiscal path. Other countries, the GAO explains, have used well-designed fiscal rules and targets — which constrain fiscal policy by controlling factors like expenditures or revenue — to contain excessive deficits. Germany’s constitution, for example, places limits on its deficits. GAO identified key considerations to help Congress if it were to adopt new fiscal rules and targets, as part of a long-term plan for fiscal sustainability. Congress should consider establishing a long-term fiscal plan that includes rules and targets, such as a debt-to-GDP target, and weigh GAO’s key considerations to ensure proper design, implementation, and enforcement of these rules and targets.
(SOURCE: All Ag News)