Improving fiscal outlook is expected to occur earlier than second decade
WASHINGTON, May 28, 2021 / PRNewswire / – The Concord Coalition today expressed disappointment that President Biden’s first budget, covering fiscal years 2022 to 2031, produced annual deficits greater than $ 1 trillion for each of those years and reduce the debt as a proportion of the economy from 110% this year to 117% in 2031. This is the first presidential budget since fiscal 2009 that does not seek to reduce total deficits or to reduce the debt to -Ratio GDP based on the 10-year baseline projections.
Executive Director of the Concord Coalition Robert L. Bixby issued the following statement:
The Concord Coalition supports the administration’s stated goal of reducing deficits over the long term, and we recognize that the administration’s projections show an improvement in prospects in the second decade. The budget, however, would produce a sizable dip in additional debt for many years before it gets there, even if things go as planned.
“As the economy shows encouraging signs of rebounding from last year’s devastation, it is time to begin the difficult process of stabilizing, and then reducing, the unsustainable path debt was on long before the crisis. COVID-19 pandemic does not strike. This budget leaves that task for another day while digging the hole even deeper during this presidential term and the next.
“To be clear, the current circumstances do not call for austerity, and it may be justified to increase spending to support long-term growth, such as infrastructure, child care and research. tax cuts adopted in 2017. The central problem with this budget is that new spending exceeds new revenue for almost a decade, which only increases the debt burden and dampens the potential for economic growth to fall. long term.
We are only at the beginning of what will be a very important debate on the size and scope of the federal government. To his credit, the president made it clear that the new proposals had to be paid for. It is a good starting point for negotiations. As the process progresses, the Concord Coalition encourages the administration, its allies and opponents in Congress to engage in bipartisan negotiations in good faith without preconditions and with due regard for fiscal sustainability.
A copy of this press release is available here.
The Concord Coalition is a grassroots, non-partisan fiscal responsibility organization. Since 1992, Concord has worked to educate the public about the causes and consequences of the federal deficit and debt and to develop realistic solutions for sustainable budgets. For more information and tax analyzes, visit concordcoalition.org and follow us on Twitter.
SOURCE The Concord Coalition