US national debt exceeds $36 trillion
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Republicans have repeatedly criticized US President Joe Biden for what they believe were actions that led to the drastic increase.
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The Treasury Building in Washington, on May 4, 2021 (AP)
The US national debt has surpassed $36 trillion for the first time in history, according to US Debt Clock data.
According to the service's database, the "total national debt" column was a record figure of $36 trillion on November 15 after surpassing $34 billion in early January.
Previously, Republicans chastised US President Joe Biden for his actions, which, they said, contributed to the increase.
In its June report on the findings of the US economy review, the IMF emphasized the country's urgent need to address the problem of national debt, which will reach 140% of GDP by 2032. The IMF stated that the ongoing expansion of the public debt-to-GDP ratio must be addressed immediately.
According to the Fund, "Such high deficits and debt create a growing risk to the U.S. and global economy, potentially feeding into higher fiscal financing costs and a growing risk to the smooth rollover of maturing obligations."
The Congressional Budget Office predicts that by 2034, the national debt will reach $50 trillion (122% of GDP). According to the office's estimates, the average annual GDP growth rate from 2029 to 2034 will be 1.8%.
US budget deficit hits $1.8 trillion in third record high
Last month, the US announced that its budget deficit increased to $1.8 trillion over the past year, marking the third-highest figure on record.
On Friday, the US Treasury Department reported that the total budget gap grew by $138 billion for the fiscal year ending September 30, 2024.
The Treasury cited a nearly 30% increase in interest payments on public debt, primarily due to rising interest rates, as a key factor in the widening deficit.
Additionally, the deficit was partially influenced by a reversal of over $330 billion in expenses from the previous year, when the Supreme Court overturned President Joe Biden’s student loan forgiveness program.
A White House official attributed the increase in the deficit to congressional Republicans, stating that “tax cuts led to low revenue levels that increased the debt.”
Moreover, excessive military spending and rising Social Security costs further exacerbated the situation.
Despite the crisis, Treasury Secretary Janet Yellen claimed that the US economy has not only stayed resilient but also demonstrated growth in 2024. She further stated that the government's total debt could have reached $4.8 trillion had the Biden administration not managed to save $3 trillion.
