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US budget deficit to rise to 3.5 percent of GDP by 2023

Tuesday, 17 Sep 2013 | 10:08 AM ET
CBO's long-term budget outlook
Tuesday, 17 Sep 2013 | 10:07 AM ET
There is still structural reform needed on Federal health programs, reports CNBC's John Harwood, who breaks down the latest government data on the economy.

Near-term improvements in the U.S. debt and deficit outlook will be more than overtaken by the rising costs of caring for an aging population over the next 30 years, the Congressional Budget Office said on Tuesday.

In new long-term forecasts, the CBO projected that with no changes to tax and spending laws, the deficit would reach 6.4 percent of gross domestic product by 2038 compared to 3.9 percent this year.

Registered nurse JoAnn Brand (L) examines Sham Tavakoli at the Lifelong Medical Marin Adult Day Health Care Center.
Getty Images
Registered nurse JoAnn Brand (L) examines Sham Tavakoli at the Lifelong Medical Marin Adult Day Health Care Center.

Public debt held would reach 100 percent of GDP in 2038 versus 73 percent this year, the non-partisan CBO forecast.

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By Reuters

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