WASHINGTON, March 20 (Reuters) - The Congressional

Budget Office said on Wednesday that U.S. deficits and debt will

grow considerably over the next 30 years as interest costs

mount, but the outlook had improved from forecasts made last

June due to spending limits passed by Congress and stronger

projected economic growth.

The CBO's latest long-term budget projections show federal

deficits rising to 8.5% of gross domestic product in fiscal 2054

from 5.5% in fiscal 2024. The CBO in June projected the fiscal

2053 deficit at 10.1% of GDP.

The projections also show that U.S. public debt will climb

to 166% of GDP in 2054 from 99% in 2024, but this is down

considerably from the June projection of 2053 debt at 181% of

GDP.

The reduction, according to the non-partisan budget referee

agency, is partly because Congress has passed two measures

limiting the growth of spending on discretionary programs,

including defense and government agency budgets.

The projections assume no changes to current tax and

spending laws for the next 30 years, and include the effects of

individual tax rates reverting to higher levels at the end of

2025.