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flag U.S. deficit to hit 5.9% of GDP by 2030, debt to soar to 108% of GDP, CBO warns.

flag The Congressional Budget Office projects the U.S. federal deficit will rise to 5.9% of GDP by 2030, driven by growing spending on Social Security, Medicare, and Medicaid, which together are expected to exceed 30% of GDP by 2034. flag Federal debt held by the public is forecast to reach 108% of GDP by 2030 and climb to 175% by 2056, with interest payments on the debt projected to exceed $2.1 trillion annually by 2036. flag Despite modest economic growth of 2.1% and low long-term Treasury yields, the CBO warns the current fiscal path is unsustainable without major policy changes to reduce deficits.

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