U.S. deficit will soar in the next decade, new CBO projections show

The U.S. deficit is expected to climb over the next 10 years with higher interest payments set to account for a historic share of government spending, the Congressional Budget Office said on Wednesday.

Why it matters: New projections from the nonpartisan agency show deficits jumping from $1.6 trillion this year to $2.6 trillion in 2034, alongside a slightly less gloomy prediction for the nation's fiscal health than previously estimated.

By the numbers: The deficit will be 5.6% of GDP this year before jumping to 6.1% in 2025, and ultimately holding at that level in 2034.

So it’s come to this: We might have to worry about the deficit

As though there were not enough things in the world to worry about at the moment, a perennial issue has once again been percolating: Is the United States’ financial house in order? Talk about the federal government’s deficit — meaning the difference between what it spends and what it collects in taxes — has started to pick back up. The same goes for chatter about the country’s debt. Deficits are a gamble — a wager that the government paying out more than it’s taking in, especially as time goes on, is worth the risk.