Opinion | The author's opinion does not necessarily reflect Sarah Palin's view.
The Congressional Budget Office released a revised projection of a $1.9 trillion federal budget deficit for fiscal year 2024, attributing the increase to new spending including defense appropriations and student debt forgiveness.
Interest payments on the national debt are projected to surpass defense spending and eventually become the largest budget item.
The rise in deficit spending under President Joe Biden and Democratic-led initiatives like the American Rescue Plan and infrastructure bill has led to significant fiscal challenges, prompting calls for thoughtful deficit reduction to mitigate escalating interest costs and safeguard the economy, healthcare, and national security.
“Within the next few years, interest on the debt will exceed Social Security payments and become the largest item in the budget,” Wall Street Silver wrote online.
“At a projected $870 billion, interest will surpass total spending on national defense ($822 billion) in 2024 and grow well beyond the defense budget over time,” the Committee for a Responsible Federal Budget said.
It added, “Interest costs will also slightly exceed net Medicare spending ($851 billion) this year and remain in line with Medicare costs in future years. That would make interest the second largest line item in the budget after Social Security.”
“Thoughtful deficit reduction can help to reduce interest costs, both by lowering debt and putting downward pressure on interest rates,” CRFB wrote.
“Absent such action, debt will represent a growing threat to our economy, our health care system, and our national security,” it added.
