US NATIONAL DEBT: Doubles over next decade

INCREASING DEBT A CONCERN

The U.S. national debt will nearly double over the next 10 years as recession crimps government revenue while spending on retirement and medical benefits soars, official forecasts said on Tuesday.

The White House now expects the 10-year budget deficit to reach $9.05 trillion, roughly $2 trillion more than it estimated earlier in the year, according to a report released Tuesday by the Office of Management and Budget.

Budget office director Peter Orszag pointed to a number of measures put in place to stem the pain of the economic downturn.”As a result of a deeper-than-expected recession, certain spending programs (such as unemployment insurance and food stamps) are projected to automatically increase and revenues are projected to automatically decline, compared to our previous projection,” Orszag said in a statement.

A 10-year deficit of $9 trillion means the debt held by the public — the accumulation of all annual deficits over the decades — would reach 82% of gross domestic product. That’s double the 41% recorded in 2008.

I know that there will be some who say this report proves that we cannot afford health reform. I think that has it backward,” Orszag told reporters on a conference call. “The size of the fiscal gap is precisely why we must enact well-designed and fiscally responsible health reform now.”

Obama’s central policy priority of overhauling the U.S. healthcare system has already run into opposition from angry from critics who complain its $1 trillion pricetag is too high and who worry it will limit choice.