US lawmakers struggle to deal with growing budget deficit

, after Moody’s Institute announced a negative credit rating of the US government, the country’s Congress has faced countless requests to find a way to deal with the growing budget deficit and the government’s debt ceiling.

According to the report, there is no specific action for the three basic choices to address the government’s debt ceiling, which has doubled over the past decade alone, to $33.7 trillion. reached and is about 124% of GDP, not done: increase taxes, cut costs, or a combination of both measures.

Ministry The Treasury announced that this has led some lawmakers to call for a commission to take effective action to address real-world views to focus on the government’s exploding debt ceiling, and there are now growing concerns that interest rates will rise. The finding and figure of payments on the national debt of fiscal year 2023 has been a shocking figure of 659 billion dollars.

In this regard, Senator Mike Bran, a member of the Congress Budget Committee, stated in an interview that the formation of a financial commission is urgently needed.

In this interview, he added: the budget deficit and the debt ceiling can become an important issue in the 2024 elections, especially when interest payments begin And heavy expenses, other important things for the people have been left out, including the cost of federal programs from defense to internal security.

Meanwhile, some lawmakers believe that the commission will succeed only if it has enough power to compel Congress to act on their recommendations. This would prompt Republicans to cooperate more or abandon their longstanding opposition to tax increases if such measures are proposed.

As ​​a result, Moody’s Credit Rating Institute a few days ago, the credit rating of the government changed from “stable” to “negative”. Modi announced that high interest rates have led to an increase in borrowing costs.

Moody’s credit rating agency has announced a negative outlook for the government’s credit rating. He stated that Washington may not be able to reach an agreement on covering its growing budget deficit.    

So Since the credit rating was announced negatively, the Republicans of the US House of Representatives approved a temporary budget bill to prevent a government shutdown. The interim budget bill would extend the government’s budget at current levels through 2024, giving lawmakers more time to hammer out the details of an overall budget bill for the new fiscal year that would cover everything from the military to scientific research. >.

In this temporary budget bill, reduction of government expenses and budget for border security are not considered, Also, funding for military structures, veterans benefits, transportation, housing, urban development, culture, Food and Drug Administration, and energy and water programs has been extended until January 19 of next year. Funding for all other federal actions, including the defense budget, will expire on February 2, 2024. /span>.

The US government faced a budget deficit of 1.7 trillion dollars last year, which is the largest figure The budget deficit was after the end of the Covid-19 pandemic, and the increase in interest rates means that the cost of servicing will continue to rise.

while The Secretary of the Treasury and the head of the Office of Management and Budget of the United States announced in their joint statement that the country’s budget deficit increased by 320 billion dollars to 1.7 trillion over the past year. The dollar has arrived.

At the same time, the US Treasury recently announced the country’s national debt at an unprecedented 33 trillion dollars.

The U.S. debt has soared after President Joe Biden passed a bill in early June that lifted the $31.4 trillion debt ceiling over two years, effectively reaching The government made it possible to continue borrowing without limits until 2024.

Bank of America (BoA) in A note, citing data from the Congressional Budget Office, warned that the country’s government debt could increase by $20 trillion over the next 10 years to about $54 trillion.

US Congress approves temporary budget bill

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