On the last day of September, the current fiscal year, the debt of the United States will increase so much that it will be equal to the overall economy of the United States. This is the first time since World War II that the United States has fallen into such a precarious situation. The non-partisan Congressional Budget Office (CBO) released the alarming information on Wednesday.
According to the CBO, the Corona epidemic has had a devastating effect on the economy as the government has spent huge sums of money to control it.
According to the CBO, by the end of 2020, the debt of the United States will be equal to 98 percent of the nation's gross domestic product. In the last financial year, the debt was 69 percent of the GDP.
They also fear that the amount of government debt next year will exceed the size of the US economy. As a result, the government's annual budget deficit will exceed all-time records.
The budget deficit for the current fiscal year (until September 30) will be close to ৩ 3.3 trillion. That's three times more than last financial year.
Incidentally, the amount of deficit is taking on an unimaginable size due to the recent tax cuts and the abnormal increase in government expenditure.
According to the data, the government spends about ৪ 4 trillion every year on various development programs and services. But since March, the government has spent about ৩ 3 trillion on Corona relief.
A large part of this money is spent on business and unemployment benefits.
Informative post