Jan 23, 2013 No Comments ›› Toro520
Excerpted from CNS News:
(CNSNews.com) – The Government Accountability Office (GAO) reported that federal spending will drive the national debt to “unsustainable” levels in the coming decades, fueled by ever-rising health care costs and federal entitlement spending.
“The growing fiscal imbalance is driven on the spending side by rising health care costs and the aging of the population,” the GAO said in its report, The Federal Government’s Long-Term Fiscal Outlook, Spring 2012 Update.
Furthermore, “[d]espite limits on discretionary spending that would bring discretionary spending to levels not seen in recent history, our simulations show total federal spending continuing to exceed revenues and feeding an unsustainable growth in debt,” states the report. “The policy actions required to close the fiscal gap are significant, and changing the long-term outlook will likely require difficult decisions about both federal spending and revenue.”
The GAO said that the federal spending caps negotiated by House Speaker John Boehner (R-Ohio) in August did improve the picture some, but they did not address the real cause of the crisis: entitlement spending, such as for Social Security and Medicare. (Back in August 2011, in a deal to raise the debt ceiling on federal borrowing, Congress agreed to a $1.047 trillion cap on discretionary spending for fiscal year 2013.)