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Federal Debt: Answers to Frequently Asked Questions--An Update

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Report Type Reports and Testimonies
Report Date May 28, 1999
Report No. OCG-99-27
Subject
Summary:

Although the U.S. government has carried debt throughout its entire history, the large annual budget deficits of the last 20 years sharply increased the overall federal debt and its associated annual interest payments. Deficit reduction measures, along with economic growth, have helped to shrink annual deficits. At the end of fiscal year 1998, the federal budget was in surplus for the first time in nearly 30 years, and surpluses were projected to continue for the next decade. This report answers frequently-asked questions about the federal debt, deficits and surpluses, and interest rates. It also answers questions about debt in a time of surplus.

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