President Barack Obama’s new budget will produce a string of annual deficits averaging in excess of $926 billion over the next decade and more than triple what taxpayers pay each year in interest charges on the national debt, according to new estimates released Friday by the Congressional Budget Office.
The raw numbers bring the extent of the prospective damage from excessive spending into focus:
CBO calculates that the current fiscal year ending Sept. 30 will show a record deficit of $1.85 trillion that narrows to $658 billion in 2012. But that proves to be the low point for the decade, and by 2018 and 2019, CBO says the government would be back in a situation where it is running up more than $1 trillion in red ink annually.
The level of debt held by the public as a percentage of the gross domestic product will grow to 82.4% —more than double what it was only last year. All told the deficits projected by CBO would total $9.27 trillion for the next 10 years, more than $2.3 trillion above what the White House had predicted using more optimistic economic assumptions.
As the debt grows, so does the annual cost of simply meeting interest charges –which threaten to squeeze out important programs. CBO estimates that net interest costs in 2009 will be $170 billion; by 2019, that will have risen to $806 billion.
I vigorously oppose the Obama budget. If passed, it will encase future generations in a straitjacket of debt and severely limit our range of action as a nation.