CNN —The federal budget deficit will balloon from $1.6 trillion this fiscal year to $2.6 trillion in fiscal year 2034, according to the latest Congressional Budget Office outlook released Wednesday. A major reason for the widening gap between revenue and spending: a spike in net interest payments on the federal debt due to higher interest rates. The nation’s debt held by the public is expected to rise to a record 116% of the economy by 2034. CBO’s deficit projection will likely add pressure to congressional lawmakers who have yet to agree on funding for federal agencies for fiscal year 2024. Budget experts called on Congress to take action to address the nation’s worsening fiscal situation.

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Persons: MacGuineas, they’ve, Mike Johnson, ” Michael Peterson, Peter G Organizations: CNN, Congressional, Social Security, Medicare, CBO, GOP, Capitol, Federal, House Republicans, Peterson Foundation