December 2003

The Long-Term Budget Outlook

This Congressional Budget Office (CBO) report extends previous long-term analyses by CBO, examining pressures on the federal budget over the coming decades and the kinds of policy choices that lawmakers face as they consider ways to alleviate those pressures. If current policies continue, rapidly rising health care costs and an aging population will sharply increase federal spending for entitlement programs, such as Social Security, Medicare, and Medicaid. This report presents illustrative scenarios for federal spending and revenues through 2050 and describes the implications of those scenarios for the economy. In accordance with CBOs mandate to provide objective and impartial analysis, this document contains no recommendations.