The Nation's Fiscal Health: Actions Needed to Achieve Long-Term Fiscal Sustainability

Congress and the administration face serious economic, security, and social challenges that require difficult policy choices in the near term in setting national priorities and helping promote economic growth. This will influence the level of federal spending and how the government obtains needed resources. At the same time, the federal government is highly leveraged in debt by historical norms. For example, debt held by the public as a share of GDP at the end of fiscal year 2018 was 78 percent, compared to an average of 46 percent since 1946. Over the long term, the imbalance between spending and revenue that is built into current law and policy is projected to lead to continued growth of the federal deficit and debt held by the public as a share of GDP.