US overtakes EU in assistance to Kiev since recent $77.95 bln pledge

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The Kiel Institute for the World Economy reported that the US has officially overtaken Europe in assistance to Ukraine since the recent announcement of committing the staggering amount of 73.1 billion euros ($77.95 billion) in financial and military assistance to Kiev.

"With additional data now collected (November 21 to January 15), the US again takes the lead. With additional pledges of nearly 37 billion euros in December, the Americans have earmarked a total of just over 73.1 billion euros for Ukraine support. For the EU, the comparable figure is 54.9 billion euros," the institute said in a statement on Tuesday, noting that the amount of financial and military assistance had increased, while humanitarian pledges remained at similar levels.  

The statement further pointed out that the volume of support was lower than the costs incurred by Western countries in previous wars. 

"The United States, for example, spent more than 3 times as much per year compared to their expenses in the Afghanistan war after 2001 (measured as percent of GDP). Germany committed more than 3 times as much to Allies in the Gulf War of 1990/91 compared to what it has committed to Ukraine (again measured in percent of GDP)," the statement read.  

The data did not take into account the delivery of tanks from Western allies, which was announced earlier this month. 

Read more: Pentagon announces new $460mln military assistance package to Ukraine

The Pentagon said Monday in a statement that the total amount of US assistance to Kiev had exceeded $30 billion since the start of US President Joe Biden's term. 

On February 16, the Congressional Budget Office (CBO) said the US Treasury could exhaust its funds by July leading to a default on American debt unless Congress raises the current $31.4 trillion debt ceiling. 

The head of CBO, Phillip Swagel, warned that if IRS tax revenues fall short of its estimates, then "the extraordinary measures could be exhausted sooner, and Treasury could run out of funds before July." 

The IRS is scheduled to receive the report on tax revenues in April.

The budget office now projects that the annual federal budget deficit over the next 10 years will reach $18.8 trillion despite its earlier estimates released last May that the figure would be 20% lower at $15.7 trillion.

In short, the output of the US economy will equal the public debt by 2024 and is expected to rise to 118% of the economy by 2033.

Read more: Biden renews military aid during surprise Kiev visit