The Government Accountability Office reiterated its recommendation that Congress create a sustainable fiscal plan in order to prevent public debt from surpassing gross domestic product.
The government watchdog on Monday released its annual fiscal health report, which showed a $1.4 trillion federal budget deficit in fiscal year 2022, the fourth largest in U.S. history.
Federal debt held by the American public in 2022 totaled $24.2 trillion, $2 trillion higher than the previous year. It is projected to be equivalent to 105 percent of the GDP in 10 years, and more than 200 percent of the GDP by 2051.
GAO urged Congress to adhere to its recommended fiscal plan components to address fiscal sustainability. The agency called for improvements in rules and debt-to-GDP targets, as well as a regular assessment of primary deficit drivers.
Lawmakers should also develop alternatives to debt limit approaches, such as giving the Department of the Treasury authorization to propose borrowing limit changes, GAO said.
