Fiscal Policy Outlook August, FY2022 Snapshot 2022: $1,375 Billion Deficit HIGHER THAN AVERAGE SPENDING AND TAXATION Mandatory Spending Crowds Out The Budget MAJOR COMPONENTS OF MANDATORY SPENDING ENTITLEMENTS AND INTEREST IS SQUEEZING OTHER PRIORITIES MANDATORY SPENDING IS BAD: INTEREST IS EVEN WORSE THE U.S. IS BORROWING TO PAY INTEREST COSTS The U.S. Runs a Structural Primary Deficit DEBT ULTIMATELY ON AN UPWARD TRAJECTORY DEBT ULTIMATELY APPROACHES WHAT DRIVES OUR DEBT? Congressional Budget Process Timetable Gordon GrayFormer Vice President for Economic PolicyGordon Gray is the former Vice President for Economic Policy at the American Action Forum. Chart Book Index Fiscal Policy Outlook August, FY2022 Snapshot 2022: $1,375 Billion Deficit HIGHER THAN AVERAGE SPENDING AND TAXATION Mandatory Spending Crowds Out The Budget MAJOR COMPONENTS OF MANDATORY SPENDING ENTITLEMENTS AND INTEREST IS SQUEEZING OTHER PRIORITIES MANDATORY SPENDING IS BAD: INTEREST IS EVEN WORSE THE U.S. IS BORROWING TO PAY INTEREST COSTS The U.S. Runs a Structural Primary Deficit DEBT ULTIMATELY ON AN UPWARD TRAJECTORY DEBT ULTIMATELY APPROACHES WHAT DRIVES OUR DEBT? Congressional Budget Process Timetable Share Chart Book