According to a recent report, the US government faces a “significant risk” of defaulting on all of its financial obligations as early as June.
According to a report published on 12 May by the US Congressional Budget Office (CBO), the US government will default on its debt in the near future, due to the fact that it reached its legal borrowing limit on 19 January. $31.4 billion.
The CBO estimates that if the borrowing limit is not changed, the US government could find itself in trouble as early as June. The report states:
“The CBO estimates that if the debt ceiling remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will not be able to meet all of its obligations.”
The CBO predicts that the federal budget deficit will hit $1.5 trillion in 2023, which is $100 billion more than its initial estimate in February.CBO Budget Outlook, May 2023 Update. Source: Congressional Budget Office
It was emphasized that the outcome of the ongoing case before the Supreme Court on the forgiveness of outstanding student loan debt could significantly affect total revenue by 2023.
According to reports, the shortfall in tax collections recorded through April may also contribute to a larger deficit than initially expected.
However, based on its forecast data, the CBO does not expect deficit growth to decline in the near future; The annual deficit was predicted to “nearly double over the next decade”, reaching $2.7 trillion by 2033.
The CBO predicts that in 2033 the US will have the highest level of national debt ever recorded, stating:
“As a result of these deficits, publicly held debt also rises in the CBO’s projections, rising from 98% of GDP by the end of this year to 119% by the end of 2033, the highest level of US debt ever.” Level will be registered “
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