CBO Sees U.S. Federal Debt Exceeding Size of Economy in 2021

The U.S. federal budget deficit will soar to a record $3.3 trillion this fiscal year, swelling government debt to a size bigger than the economy in the wake of massive spending to cushion Americans from the coronavirus pandemic, according to the Congressional Budget Office’s latest tally.

Debt held by the public will reach $21.9 trillion in the fiscal year ending September 2021, or the equivalent to 104.4% of gross domestic product, up from 98.2% in the current year, the CBO said Wednesday in updated projections. Debt will increase to $33.5 trillion at the end of 2030, or 109% of GDP; the previous 10-year projection, in March, saw the figure at 98% in 2030.