US federal debt projected to grow by nearly US$10t over next decade

Washington

AFTER seven years of fitful declines, the US federal budget deficit is projected to swell again, adding nearly US$10 trillion to the federal debt over the next 10 years, according to projections from the nonpartisan Congressional Budget Office (CBO). The numbers reveal the strain that government debt could have on the economy as President Donald Trump presses to slash taxes and ramp up spending.

The deficit figures released on Tuesday will be a major challenge to House Republicans, who were swept to power in 2010 on fears of a bloated deficit and who made controlling red ink a major part of their agenda under former president Barack Obama. Statutory caps imposed in 2011 on domestic and military spending have helped temper the deficit. But those controls are likely to be swamped by health care and Social Security spending that will rise with an ageing population.