By Casey Harper (The Center Square)
The United States is facing a staggering annual deficit that is rapidly approaching $2 trillion for the current fiscal year. This figure is nearly double the record deficits seen before the onset of the COVID-19 pandemic, with federal borrowing skyrocketing to over $5 billion per day.
According to the U.S. Congressional Budget Office’s latest report, the federal deficit for fiscal year 2024 is estimated to be $1.8 trillion, marking a $139 billion increase from the previous fiscal year.
This concerning deficit news comes amidst a continuous surge in the national debt, which is edging closer to a daunting $36 trillion.
“Within the next dozen years, three major trust funds – for highways, Medicare, and Social Security – will run out of reserves, forcing us to grapple with even more challenging decisions on how to sustain crucial government priorities,” remarked Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
Despite a significant 11% increase in federal revenue, totaling $479 billion, as reported by the CBO, the mounting debt continues to escalate.
Recent analyses of the tax plans proposed by the respective presidential candidates indicate that both plans would contribute to the national debt. Various polls conducted in recent years have highlighted inflation, partially fueled by debt spending, as a major concern among Americans.
MacGuineas also warned of potentially worsening circumstances in the coming year. She stated, “In 2025, lawmakers will face new hurdles, including rising deficits, debt, and interest, the reinstatement of the debt ceiling, the expiration of the Fiscal Responsibility Act’s budget caps, and significant tax and spending expirations.”
Syndicated with permission from The Center Square.
