Non-partisan Congressional Budget Office (CBO) released its latest 10-year budget and economic forecast on Friday, showing the federal government is on track to break the debt record set nearly 80 years ago.

The CBO projection shows that as a percentage of gross domestic product (GDP), or compared to the size of the U.S. economy, federal debt is projected to increase from 98% of GDP at the end of FY2024 to 107% of GDP in FY2029.

The debt held by the public then would not only exceed the size of the US economy, but also exceed the current debt record of 106% of GDP, set in 1946 when the US began demobilization after the end of hostilities. World War II. It is projected to continue growing going forward, reaching 118% of GDP in 2035.

“From 2025 to 2035, the debt will increase as increases in spending on Social Security, Medicare and interest payments outpace increases in income,” CBO Director Phillip Swagel told reporters.

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The U.S. debt limit was reached on Thursday, raising fears of a potential default. (FOX Business/Fox News)

The federal government is projected to manage $1.9 trillion budget deficit In fiscal year 2025. The deficit is projected to decline briefly over the next two years before resuming growth, projected to reach more than $2 trillion in fiscal year 2030 and $2.7 trillion in fiscal year 2034.

The temporary decrease in the size of the deficit is partly due to the projected completion of parts of 2017. tax deductions At the end of this year, according to the current law, it leads to an increase in tax revenues. Although Congress and the incoming Trump administration could pass new laws that expand these provisions.

CBO's analysis is based on current law, so changes to federal tax and spending policies could change these numbers.

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Much of the increase in the deficit is due to this increased costs Entitlement programs like Social Security and Medicare as America's population continues to age and the cost of servicing a larger national debt increases in an era of rising interest rates.

to spend Social security It is projected to increase from $1.5 trillion in fiscal year 2025 to $2.6 trillion in fiscal year 2035, while Medicare spending is expected to increase from $942 billion to $1.7 trillion over the same period. Interest costs on the national debt will rise from a projected $952 billion this fiscal year to more than $1.7 trillion a decade from now.

Swagel also noted that Social Security's Old Age and Survivors Insurance Trust Fund is projected to run out in 2033, as predicted by CBO's most recent analysis last June.

When that trust fund is depleted, Social Security beneficiaries will, by law, automatically see their benefits reduced to match their payroll tax returns, according to an analysis by the nonpartisan Committee on a Responsible Federal Budget (CRFB). Social security benefits decreased by 21%.

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“A fiscally weak country cannot remain strong for long,” CRFB President Maya MacGuineas said in a statement. “The United States has built up a dangerous mountain of debt because our political leaders are unwilling to do the hard work of governing responsibly and acting as fiscal stewards for the country.

“They choose to borrow at record levels rather than admit that part of the budget has a plan to pay the bills, despite the incredible damage they continue to do to the country as the debt grows,” he said. “As today's report shows, our debt is near record levels seen only since World War II, and we will spend more in interest than Social Security and any other program except Social Security in less than a decade.”

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Michael Peterson, CEO of the nonpartisan Peter G. Peterson Foundation, said, “By any definition, we are on an unsustainable fiscal path. We are currently on track to add $22 trillion to our national debt over the next decade, including $14 trillion over the next ten years.” our debt will reach a staggering 118% of our entire economy.

“Today's report presents a dire outlook, but the good news is that there are many policy solutions available to address our fiscal challenges,” Peterson added. “As we approach Inauguration Day, our leaders have a new opportunity to secure America's economic future by putting us on a stronger, more sustainable fiscal trajectory.”