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Abstract
U.S. government finances have experienced a remarkable turnaround in recent years. Within only a few years, hard-won gains of the previous decade have been lost and, instead of budget surpluses, deficits are again projected as far as the eye can see. The deterioration has not been restricted to the federal budget but has also taken place at the state and local government levels. As a result, the U.S. general government deficit is now among the highest in the industrialized world, and public debt levels are approaching those in other major industrial countries (Figure 1.1).
Abstract
U.S. government finances have experienced a remarkable turnaround in recent years. Within only a few years, hard-won gains of the previous decade have been lost and, instead of budget surpluses, deficits are again projected as far as the eye can see. The deterioration has not been restricted to the federal budget but has also taken place at the state and local government levels. As a result, the U.S. general government deficit is now among the highest in the industrialized world, and public debt levels are approaching those in other major industrial countries (Figure 1.1).
Abstract
The U.S. fiscal position has deteriorated significantly in recent years. In 2000, the Congressional Budget Office (CBO) projected surpluses in the range of 3 percent of GDP for the next 10 years and for the federal debt to be nearly paid down by 2010. Since then, partly because of the economic downturn, but also reflecting policy initiatives to boost spending and cut taxes, the budgetary balance has swung into substantial deficit. The fiscal deficit seems likely to reach over 4 percent of GDP in FY2004 and to remain significant well into the future.
Abstract
The U.S. fiscal position has deteriorated significantly in recent years. In 2000, the Congressional Budget Office (CBO) projected surpluses in the range of 3 percent of GDP for the next 10 years and for the federal debt to be nearly paid down by 2010. Since then, partly because of the economic downturn, but also reflecting policy initiatives to boost spending and cut taxes, the budgetary balance has swung into substantial deficit. The fiscal deficit seems likely to reach over 4 percent of GDP in FY2004 and to remain significant well into the future.
Abstract
The reemergence of large U.S. budget deficits in recent years has heightened concern about the implications of demographic trends for the longer-term fiscal position.1 In particular, with the tax cuts enacted in 2001 and 2003, and the higher levels of spending that have been introduced, substantial budget shortfalls are projected over the coming decade. With federal debt now rising as a share of GDP, the fiscal position seems to be considerably less well prepared to cope with the impending retirement of the baby boom generation, especially in view of the substantial actuarial deficits facing the Social Security and Medicare systems. In this section we describe the long-term fiscal challenges that result from these trends and briefly discuss recent Social Security and Medicare reform proposals.
Abstract
The reemergence of large U.S. budget deficits in recent years has heightened concern about the implications of demographic trends for the longer-term fiscal position.1 In particular, with the tax cuts enacted in 2001 and 2003, and the higher levels of spending that have been introduced, substantial budget shortfalls are projected over the coming decade. With federal debt now rising as a share of GDP, the fiscal position seems to be considerably less well prepared to cope with the impending retirement of the baby boom generation, especially in view of the substantial actuarial deficits facing the Social Security and Medicare systems. In this section we describe the long-term fiscal challenges that result from these trends and briefly discuss recent Social Security and Medicare reform proposals.
Abstract
The recent dramatic deterioration of the U.S. fiscal position has heightened long-standing concerns about the extent to which the retirement and health care systems are prepared to cope with the pressures of an aging population. These concerns have been echoed in the administration’s FY2004 budget, which described these programs as being on “an unsustainable path” and stated that the “resources of these programs are insufficient to cover their long-range shortfalls.”1
Abstract
The recent dramatic deterioration of the U.S. fiscal position has heightened long-standing concerns about the extent to which the retirement and health care systems are prepared to cope with the pressures of an aging population. These concerns have been echoed in the administration’s FY2004 budget, which described these programs as being on “an unsustainable path” and stated that the “resources of these programs are insufficient to cover their long-range shortfalls.”1