![]() At that point, Social Security will begin tapping its trust fund to help pay promised benefits. The Social Security trust fund is projected to grow to a peak of about $4.2 trillion by 2024. Though modest changes will be needed to put Social Security in balance over the 75-year planning period, the projected shortfall is less than 1% of gross domestic product (GDP). It cannot add to the deficit if the trust fund is exhausted because the law prohibits it from borrowing (if current revenues and savings in the trust fund are not sufficient to pay promised benefits, these have to be cut). Social Security can only spend what it receives in tax revenues and has accumulated in its trust fund from past surpluses and interest earnings. ![]() ![]() Social Security is running a surplus of $77 billion this year 1 and amassing a trust fund large enough to last through the peak retirement years of the Baby Boomers. While it is true that Medicare spending will soar if health care cost growth is not brought under control, the same is not true of Social Security spending, which is projected to level off as a share of GDP after the Baby Boomer retirement. CNN Sans ™ & © 2016 Cable News Network.The conventional wisdom in Washington is that an aging population will cause entitlement spending to balloon, driving our nation deeply into debt (see, for example, Brookings-Heritage Fiscal Seminar 2008, Peterson-Pew Commission 2009). Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account In the 2019 fiscal year, the deficit totaled $980 billion.Īmerica’s debt levels are remaining elevated at a time of historically high inflation and when interest rates are quickly ratcheting higher - making borrowing even more expensive.Ĭorrection: A previous version of this story misstated the beginning of the 2023 fiscal year, which started in October. While the shortfall was the smallest in three years, it remains historically high. Receipts for November fell by 10%, or $29 billion, with decreases seen in areas such as government revenue from payroll taxes.įactoring in calendar-related differences affecting the November 2021 budget, the November 2022 deficit would be only 20% higher, according to the Treasury.įor fiscal year 2023, which started in October, the government is running a deficit of $336 billion, which is $20 billion narrower than the comparable year-ago period.ĭuring fiscal year 2022, the US budget deficit was slashed in half, falling to under $1.4 trillion, amid a winding down of pandemic-related spending and a jump in revenue from the surging economic recovery. The US government recorded a monthly budget deficit of $249 billion in November, a 30% increase from a year earlier amid increased spending and falling revenue, the Treasury Department reported Monday.įederal budget outlays increased by $28 billion, or 6% in November, with agencies such as the Education Department reporting increased spending, according to the Monthly Treasury Statement.
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