The United States deficit has reached alarming levels as President Joe Biden prepares to leave office. According to the latest report from the U.S. Congressional Budget Office, the federal government has accumulated a deficit of $622 billion in the first two months of this fiscal year. This amount is $242 billion higher than the deficit recorded during the same period last year, representing a nearly 40% increase.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, expressed concern over the government’s inability to live within its means. She stated, “We are only two months into the fiscal year, and we have already borrowed a staggering $622 billion, with $365 billion in the month of November alone.”
Prior to the COVID-19 pandemic, deficits had never exceeded one trillion dollars. However, since then, they have remained well above that threshold. The deficit for the last fiscal year was approximately $1.8 trillion, and the current pace suggests that it will surpass $1 trillion for the upcoming fiscal year.
Billionaire Elon Musk, an advisor to President-elect Donald Trump, highlighted the importance of addressing the deficit. Musk emphasized that failure to address the deficit would have negative consequences on essential spending areas such as the Department of Defense, Medicare, and Social Security.
The CBO attributed some of the increase in the deficit to accounting changes, stating, “The change in the deficit was influenced by the timing of outlays and revenues alike.” They explained that certain shifts in the timing of federal payments contributed to the increase in outlays for the current fiscal year.
As the deficit continues to rise, it is crucial for policymakers to address this issue to ensure the long-term financial stability of the country. Failure to do so could have significant repercussions on essential government programs and services. It is essential for the incoming administration to prioritize fiscal responsibility and take necessary steps to reduce the deficit in the coming years.
This article was syndicated with permission from The Center Square.
