The US national debt just hit a new all-time high of $34.667 trillion. New numbers from the Treasury Department’s Debt to the Penny system show the country’s national debt reached the milestone on Friday, May 31st. That’s a $677 billion increase from the start of 2024, when the nation’s debt stood at $33.990 trillion. The […]
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The United States Congressional Budget Office (CBO) has predicted that the U.S government's annual deficits will “nearly double over the next decade.”
The United States government faces a “significant risk” of no longer being able to meet all of its financial obligations as early as June, as per a recent report.
According to a May 12 report published by the U.S. Congressional Budget Office (CBO), the risk of the U.S. government defaulting on its debt in the near future stems from ithaving reached its statutory debt limit of $31.4 trillion, on Jan 19.
The CBO predicts that if the debt limit remains unchanged, the U.S. government could be in hot water as early as June. It noted:
“CBO projects that if the debt limit remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations."
The CBO currently predicts a federal budget deficit of $1.5 trillion in 2023, which is $0.1 trillion more than it estimated in February.
It was emphasized that the outcome of the ongoing Supreme Court case regarding the cancellation of outstanding student loan debt could have a significant influence on the total revenue for 2023.
A shortfall in tax receipts recorded through April has the potential to also lead to a larger deficit than initially predicted, the report noted.
Related: How would a US debt default impact Bitcoin?
However, based on its projected data, the CBO does not anticipate a decrease in the deficit in the immediate future – in fact, it is predicted that the annual deficits will “nearly double over the next decade,” reaching $2.7 trillion in 2033.
CBO predicts that debt held by the public will also increase over the next ten years. It was noted:
“As a result of those deficits, debt held by the public also increases in CBO’s projections, from 98 percent of GDP at the end of this year to 119 percent at the end of 2033.”
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The Congressional Budget Office (CBO) has stressed that “there is a significant risk that the Treasury will run out of funds at some point in the first two weeks of June” if the debt ceiling is not raised or suspended. The CBO’s projection is in line with the estimate by the Treasury Department that a […]