The daily update from the Treasury indicates that as of June 16, the total national debt reached a record high of $32.04 trillion.
This amounts to approximately $7 trillion in government debt across all branches and departments and approximately $25 trillion in debt held by American citizens.
It has been less than two weeks since President Joe Biden signed the Fiscal Responsibility Act into law. A provision in the legislation passed on 3 June suspends the debt ceiling for 19 months, enabling the government to borrow funds until the end of 2024.
The debt threshold was previously increased to $31.4 trillion in December 2021.
The total national debt stood at $31.47 trillion on June 3, but federal borrowing increased by nearly $400 billion the business day following Biden’s signature.
The Congressional Budget Office estimates that the federal deficit for fiscal year 2023 will be $1.4 trillion.
According to the administration’s budget proposal for 2024, the gross national debt is expected to surpass $50 trillion by 2033, despite the fact that the law Biden signed also includes approximately $1.5 trillion in expenditure cuts over the next decade.
Over the next decade, this will equate to more than $17 trillion, which is greater than the national debt held by the general population as of COVID-19.
On October 2, 2022, or roughly eight months ago, the federal government surpassed $31 trillion.
Due to trillions of dollars in COVID-19-related expenditures authorized by Congress, the $32 trillion mark was reached nine years earlier than expected prior to the outbreak.
The president of The Committee for a Responsible Federal Budget, Maya MacGuineas, remarked in a statement: “We can’t even get through a single fiscal year anymore without adding a trillion dollars in debt, and $33 trillion is likely just around the corner.”
“Our debt addiction saddles the next generation with a debt burden that only grows larger so long as we insist on ducking the hard choices of governing.
“We need a return to responsible fiscal policy if we’re ever going to get ourselves out of this mess. The formula to get there should be simple: no new borrowing—meaning fully offset all new spending or tax cuts—and better yet, hold off on them until our debt is under control; address the drivers of our runaway debt; and reform our broken budget process. It’s not rocket science—it’s pretty darn straightforward, and it’s time for our politicians to get to work before it’s too late.”
More on this story via The Republic Brief:
A little over a week ago, Steve Bannon had a pessimistic forecast for Kevin McCarthy due to his submission to Democrats on the debt ceiling increase. CONTINUE READING…