By Brett Rowland (The Heart Sq.)
The federal authorities borrowed $1.9 trillion within the first eleven months of fiscal 12 months 2024, together with $380 billion in August, a startling quantity as federal watchdogs sound the alarm on spending.
These borrowing figures come from the the most recent Month-to-month Treasury Assertion from the Treasury Division.
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Maya MacGuineas, president of the Committee for a Accountable Federal Finances, mentioned that’s roughly $6 billion borrowed per day this fiscal 12 months
“America faces steep fiscal challenges in the very near future – next year alone, we’ll need to confront the multi-trillion dollar question of extending the 2017 tax cuts, we’ll need to raise the debt ceiling, and we’ll need to address the expiration of discretionary spending caps,” she mentioned. “In just three years, the national debt will be at a higher share of the economy than any point in history. And in less than a decade, the Social Security retirement trust fund will go insolvent, leaving beneficiaries with automatic and across-the-board cuts without action.”
She mentioned it’s time for former President Donald Trump and Vice President Kamala Harris to dig into the problems.
“Given these pressing deadlines, it’s more important than ever for the presidential candidates to take seriously the threats posed by high and rising debt and deficits,” MacGuineas mentioned. “Yet the debate earlier this week was another opportunity for fiscal clarity that fell flat – instead, we heard far more about what the candidates propose for new spending and tax cuts than we heard about how they will pay for them.”
She mentioned the candidates must provide you with a plan.
“Both elected officials and candidates for our nation’s highest office will need to pivot towards the specifics on deficit reduction – and soon – if we’re ever going to see a more responsible federal budget become a reality,” she mentioned.
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The analysis arm of Congress has given related warnings. A Congressional watchdog instructed President Joe Biden and Congress in February that the federal authorities is on an “unsustainable long-term fiscal path.” The report from the U.S Authorities Accountability Workplace mentioned federal spending ranges couldn’t be supported long run.
“The federal government faces an unsustainable long-term fiscal path,” in response to the U.S Authorities Accountability Workplace report. “We project that debt held by the public as a share of the economy will more than double over the next 30 years and will grow faster than the economy over the long term if current revenue and spending policies are not changed.”
U.S. Comptroller Basic Gene Dodaro mentioned Congress should take motion.
“Congress and the administration must act to move the nation off the untenable long-term fiscal course on which it is currently operating,” mentioned Dodaro, who leads the GAO. “The federal debt level is growing at a rate that could threaten the vitality of our nation’s economy and the safety and well-being of the American people. Both spending and revenue issues need to be addressed as part of a comprehensive long-term plan.”
Syndicated with permission from The Heart Sq..
