Home / Business / Disaster in the fall? The US budget deficit was close to a trillion dollars

Disaster in the fall? The US budget deficit was close to a trillion dollars



Business

Get Short URL

According to the results of the 2019 fiscal year, the US budget deficit reached $ 984 billion. This is stated in a statement from the US Treasury Steven Mnuchin

Compared to 2018, the situation deteriorated by $ 205 million, but this is 16 billion less than previously predicted. According to the restored figures, the deficit reached 4.6 percent of GDP

The Budget Office previously stated that by 2049 the US debt would increase to 144 percent of GDP and reach the highest level in the country's history. His report stated that the US government debt was 78 percent of GDP in 2019.

According to the forecast, the US situation will not improve in ten years and the budget deficit will continue to increase due to an aging population and an increase in health spending. According to Philip Swagel's Head of the Budget Office, to change the situation, the US government must increase taxes, reduce spending or take both at the same time. Trump and Congress. The document, which was approved for the financial years 2020 and 2021, raises the ceiling on central government debt for the period up to July 2021 and increases public spending

US predicts default

The US may face cases in early September due to low tax revenue. Bloomberg reported this, citing a report from the Bipartisan Political Center (BPC)

Analysts point out that the United States can pass the government debt threshold in early September if Congress does not make a decision to raise it. Experts previously predicted that the United States will exceed this threshold in October or November 2019.

The reason is for low tax revenues, which increased by only three percent compared to last year instead of the previously expected six percent.

in early 2019, US debt exceeded $ 22 trillion for the first time in history. During fiscal year 2018, the US budget deficit increased by 17 percent to $ 779 billion. It is estimated to exceed USD 1 trillion in 2020. Government debt is likely to maintain a tendency to accelerate growth as government spending is not controlled.


Source link