US public debt to hit an all-time-high 118% of GDP by 2035
2 Min Read
Federal debt held by the public rises from 100 percent of GDP this year to 118 percent in 2035.
-
In this June 15, 2018 photo, twenty dollar bills are counted in North Andover, Mass (AP Photo/Elise Amendola, File)
The United States' public debt is expected to spike to 118% of GDP by 2035, with the budget deficit projected to reach $1.9 trillion, or 6.2% of GDP, this year due to high spending, according to the Congressional Budget Office (CBO).
"From 2025 to 2035, debt swells as increases in mandatory spending and interest costs outpace growth in revenues. Federal debt held by the public rises from 100 percent of GDP this year to 118 percent in 2035, surpassing its previous high of 106 percent of GDP in 1946," the CBO stated in its Budget and Economic Outlook report for 2025–2035.
The federal budget deficit is expected to rise from $1.9 trillion in 2025 to $2.7 trillion by 2035. The CBO also noted that by 2035, the adjusted deficit will account for 6.1% of GDP, significantly higher than the 50-year average of 3.8%.
US deficit tops $700 bln to hit record in October-December
The US budget deficit reached a new high in the October-December quarter of 2024, according to Treasury Department figures released Tuesday, as expenditure increased but tax receipts decreased.
The growth in the gap increased the government's deficit to $711 billion in the first three months of its fiscal year.
According to the government, this is a 39% increase from $510 billion in the same time last year, and according to the Treasury, spending increased by 11% to a new high, but revenues decreased.
A Treasury official told reporters that outlays totaled 1.8 trillion during the three-month period.
Read more: US national debt exceeds $36 trillion
