The United States reported a budget deficit of $1.8 trillion for the past year, marking the third highest deficit in history. The increase in spending, including on interest for public debt, contributed to the widening deficit, according to the Treasury Department.
The rise in interest rates led to a nearly 30 percent increase in spending on debt interest, reaching over $1 trillion. The deficit also saw an increase in Social Security and defense spending, while receipts grew from higher income tax collections.
Despite efforts to maintain fiscal responsibility, total federal borrowing from the public rose to $28.2 trillion, with borrowing as a percentage of GDP reaching 98 percent. The economy’s performance and concerns over the national debt continue to be key issues.
Following the budget report, Treasury Secretary Janet Yellen emphasized the resilience of the US economy in 2024. The Biden administration’s commitment to fiscal responsibility was also highlighted by OMB Director Shalanda Young.
With voters feeling the impact of rising living costs and interest rates, the economy remains a focal point in the upcoming presidential election.
© 2024 AFP
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