The US budget deficit reached 1800 billion dollars
reported by Mehr News Agency, according to statistics published by the US Treasury Department on Friday, the US federal government has spent 1800 billion dollars more than its tax revenue in fiscal year 2024.
Congress has faced a budget deficit every year since 2001. In the past 50 years, the federal government has ended up with a budget surplus only four times, most recently in 2001.
The budget deficit for fiscal year 2024 is equal to 1800 billion dollars or 138 billion dollars more than the deficit of the previous year. As a percentage of GDP, the deficit was 6.4 percent, up from 6.2 percent in fiscal year 2023.
Based on year-end data from the US government’s monthly statement of receipts and expenditures of the Treasury in September 2024, the current year’s deficit excluding Considering the impact of the Supreme Court’s decision in Biden v. Nebraska on student loan programs in 2023, it is $196 billion less than in 2023.
The fiscal year 2024 deficit is $76 billion lower than the initial estimate of $1,910 billion in the 2024 budget released in March and $144 billion lower than the initial estimate of $1,980 billion in the Supplemental Update. The budget was published in July.
Maya Mack Guinias, the chair of the responsible federal budget committee, said that the size of the budget deficit is equivalent to borrowing about 5 billion dollars. It adds to the country’s debt of 35,760 billion dollars on a daily basis.
In this situation, both the main candidates for the US presidential election, Vice President Kamala Harris and former President Donald Trump, They have proposed tax and spending plans that add to the federal budget deficit.
The responsible Federal Budget Committee estimates that both the Harris plan and the Trump plan will increase the US national debt. The group estimated that Trump’s plan would cost more than twice as much as Harris’ plan.
It also pointed to areas of distinct uncertainty in both candidates’ plans. According to the analysis of the responsible federal budget committee, the Harris plan will reduce the debt to 3500 billion by 2035. increases the dollar, while Trump’s plan will increase the debt by 7500 billion dollars.
In fiscal year 2024, the US government has spent nearly $900 billion on debt interest alone. This is more than is spent on national defense, health care (Medicare) and children at the federal level.
All these figures mean that the next American president will take over the country with a debt of 35,200 billion dollars. In the meantime, despite warnings, the US Congress has continued to spend money it does not have. So much so that earlier this month, the credit rating agency Moody’s sounded the alarm.
Moody’s warned in its recent report that the next administration will face a deteriorating financial outlook for America, because Decreasing debt affordability will gradually weaken America’s financial strength. In the absence of policy measures that can curb these trends and help limit fiscal deficits, the weakening of fiscal strength will increasingly affect the credit profile of the US government.
None of the presidential candidates have presented a specific plan to address the national debt ahead of the November 5 presidential election. In March, the Congressional Budget Office projected that the deficit would reach 8.5 percent of GDP by 2054. In May, the International Monetary Fund warned that US government spending and increasing national debt are not sustainable and could harm the global economy.
Moody’s also forecast the deficit to grow substantially unchanged. The agency’s report said the federal government is expected to run a large fiscal deficit, averaging about 7 percent of GDP per year over the next five years and rising to nearly 9 percent by 2034, making the debt burden worse. from 97 to about 130 percent of GDP in 2034.
According to the report, federal interest payments relative to income and GDP are expected to double by 2034. and from 14.8 and 2.4 percent in 2023 to about 30 and 5 percent, respectively.
