In a letter addressed to Congress, a government watchdog agency said it determined that the federal government's fiscal path is unsustainable. The U.S. Government Accountability Office (GAO) outlined in its most recent report that government expenses are outpacing its revenue by a significant margin, which could harm the U.S. economy in the long-run.
Though seasoned politicians and lawmakers have frequently condemned U.S. government spending, the report's findings reiterate the economic challenges that the Trump administration will be forced to confront for the next four years.
This could be problematic for President-elect Donald Trump, who, throughout the 2016 election, promised tax cuts and an increase in military spending, which could inherently increase the federal deficit.
According to the nonpartisan Tax Policy Center, his proposed tax cuts could raise U.S. debt by $7.2 trillion over the next decade.
The GAO report also noted, "...the longer action is delayed, the greater and more drastic the changes will have to be."
Absent policy changes, the debt-to-GDP ratio would reach a historical high within 15 to 25 years.
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