US budget deficit hits new record
US budget deficit hits new record
The US government has set a new negative record of spending. Its state budget is the largest in the world. However, it is not enough to make ends meet, since government outlays often exceed receipts. According to the US Treasury Department, in January, the authorities spent $32.6 billion more than they collected. This is an impressive amount even for the United States. As a result, the budget deficit turned out to be almost three times greater than expected. In total, the budget shortfall for the early fiscal year started in October grew by 25% from the previous year and totaled $389 billion, the highest level since 2011. The situation is unlikely to change for the better. In the next two or three decades, the United States will hardly be able to stem the budget deficit. The gap between outlays and receipts will continue to grow due to population aging and rising health care costs. According to CBO Director Phillip Swagel, in order to change the situation, the US authorities will have to raise taxes, cut costs, or take both measures at the same time. At present, government spending is so heavy that it seems like the US is addressing a crisis or trying to stave off financial turmoil.
Published: 2020-02-19 11:53:53 UTC
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