The US Government Accountability Office (GAO) said in a forecast released on Monday that the US is spending well over its budget, with a projected debt double the size of the economy by the 2050s and higher than its GDP within the next upcoming decade.

The GOA, an agency that provided the US Congress with auditing, evaluative, and investigative services argued that "the federal government faces an unsustainable fiscal future," and explained that "if policies don't change, debt will continue to grow faster than the economy."  

The GOA forecast highlighted that the government anticipated a rise in spending for the financial years 2022 to 2096 from 25% to 51%.

According to the forecast, "At the end of fiscal year 2022, debt held by the public was about 97 percent of gross domestic product (GDP)," adding that "debt held by the public is projected to grow at a faster pace than the size of the economy. Debt held by the public is projected to reach its historical high of 106 percent of GDP within 10 years and to continue to grow at an increasing pace. GAO projects that this ratio could reach more than twice the size of the economy by 2051, absent any changes in revenue and spending policies."  

The GAO warning comes as the US government is on the verge of a debt default, more so because of political squabbling over the proper use of fiscal resources than because there has been an actual cash shortfall.

If the legislative ceiling on the nation's ability to service its debt is not increased by June 1st, the Treasury Department has warned that the government will probably start to default on its obligations.

White House warns of grave consequences if US defaults on its debt

The President's Council of Economic Advisers (CEA), a federal agency led by a team of experts, issued a report last Wednesday warning of the possible consequences that would ensue from the US defaulting on its debt payments.

One of the consequences listed in the report includes a series of economic shocks that would result in 8 million job losses this year's summer, as well as a 6% drop in GDP. 

It further warned that the stock market could plummet to 45% in the third quarter of this year. 

Even a delay in payments would result in an increase in unemployment as the economy heads head-first into recession, the CEA pointed out. 

Democrats and Republicans have been sparring for months over national spending and the public debt. 

US President Joe Biden has requested Republicans to raise the debt ceiling, but Republicans in the House said they would refrain from doing so unless an agreement to cut government spending is laid out. 

Read more: US Treasury running out of measures to avert June debt default: Yellen