CBO Deficit Outlook 'Gloomy'

CBO Deputy Director James Blum Wednesday told the Senate Budget Committee that while the agency's annual report due out next week will show improvement in the short-term deficit outlook, "current budget policy is unsustainable" in the long term because of escalating entitlement costs.

At a hearing on the long-term budget outlook, Blum said the "CBO's preliminary analysis suggests that the improved short-term [budget and deficit] outlook would not eliminate the long-term imbalances in the federal budget," meaning that past CBO warnings of a future deficit explosion early in the next century if nothing is done remain valid.

He said "the outlook for the deficit is gloomy" after the post-war baby boom generation retires, dramatically hiking the costs of federal retirement and medical programs.

It also was announced Wednesday that OMB Deputy Director Jack Lew will testify for the administration at the Budget Committee's hearing today on Medicare and the budget.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.