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According to the 2019 results, the US budget deficit reached $ 984 billion. This is stated in a statement by US Treasury Secretary Steven Mnuchin.
Compared to 2018, the situation has deteriorated by $ 205 million, but that number is 16 billion less than previously anticipated. In line with the restored figures, the deficit reached 4.6% of GDP.
The Budget Office previously stated that by 2049 US government debt would rise to 144% of GDP and reach the highest level in US history. His report stated that by 2019 US government debt was 78% of GDP.
The situation in the US is expected to improve over the next ten years and the budget deficit will continue to widen due to an aging population and rising health spending. Philip Swagel, director of the budgetary authority, believes that to change the situation, the US authorities will have to raise taxes, cut spending or take both at the same time.
In office, they justified this pessimistic prediction with a budget project, coordinated by US President Donald Trump and Congress. The document, which was approved for the years 2020 and 2021, raises the state debt ceiling for the period to July 2021 and increases government spending.
The US predicts the standard
The United States may find a pattern in early September due to very low tax revenues. Bloomberg reported this, referring to the report of the Bipartisan Political Center (BPC).
Analysts point out that the US could cross sovereign debt in early September unless Congress decides to raise it. Experts previously predicted that the US will exceed this limit in October or November 2019.
This is due to very low tax revenue, which has only increased by three per cent compared to last year, instead of the previously expected six per cent.
In early 2019 it exceeded US state debt for the first time in history, $ 22 trillion. In fiscal 2018, the US budget deficit increased 17 percent to $ 779 billion. It is projected to exceed $ 1 trillion by 2020. Government debt is likely to continue to accelerate growth as government spending is not controlled.