NewsRescue
The federal government’s budget deficit in the United States increased dramatically in the first nine months of the fiscal year, reaching $1.39 trillion in June, according to the Treasury Department on Thursday. The sum increased from $515.1 billion in the same time the previous year.
The federal government has a fiscal year that begins on October 1.
The budget imbalance grew by $227.76 billion in June, up from $88.8 billion in the same month previous year, according to the study.
According to Treasury figures, the primary causes of the growing imbalance were an increase in government spending and a considerable decline in tax collections.
Overall, tax receipts fell 11% between October and June compared to the same time last year, owing to a drop in stocks, bonds, and other assets. According to data, government receipts fell by $42 billion in June to $418 billion from the previous year. At the same period, spending climbed by $96 billion, to $646 billion. Inflation has also increased federal spending.
US Federal Reserve officials have been warning that the government’s finances are on an unsustainable path in the long run. The government deficit will average roughly $2 trillion every year, according to Phillip Swagel, director of the Congressional Budget Office, adding to the $32.5 trillion national debt.
“We are projected to spend more on interest payments in the next decade than we will on the entire defense budget,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “How can anyone possibly think this trend is sustainable?”
“We’re running off the rails at an alarming rate,” MacGuineas stated, adding “We need to do better.”
