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The Nation's Fiscal Health: Effective Use of Fiscal Rules and Targets

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Report Type Reports and Testimonies
Report Date Sept. 23, 2020
Release Date Sept. 23, 2020
Report No. GAO-20-561
Summary:

The government's public debt will reach 107% of GDP by the end of 2023—its highest point in history—according to the Congressional Budget Office. The growing debt will require attention once the economy has substantially recovered from COVID-19 and public health goals have been achieved.

Fiscal rules and targets can help manage debt by controlling factors like spending and revenue. We identified key considerations—like flexibility for national emergencies—to help Congress adopt new fiscal rules and targets.

Congress should consider establishing a long-term fiscal plan that includes fiscal rules and targets, informed by our key considerations.

Federal Debt Held by the Public

Figure showing actual federal debt as a percentage of gross domestic product from fiscal years 1790 through 2020 and projected debt from 2020 to 2030.

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