The Nation’s Fiscal Health: Strategy Needed As Debt Levels Accelerate

The federal government’s fiscal outlook is on an unsustainable path, with debt levels projected to outpace economic growth each year if current policies remain unchanged. By the end of fiscal year 2024, debt held by the public had surged to $28.2 trillion, nearly 98% of the nation’s GDP. Without intervention, this trajectory could lead to significant economic, security, and social challenges, including reduced flexibility for policymakers and higher borrowing costs. The GAO emphasizes that the sooner fiscal adjustments are made, the less drastic they will need to be to stabilize the nation’s financial health.