The US government faces a "significant risk" of not meeting all of its financial obligations as of June, according to a recent report.
According According to a May 12 report released by the US Congressional Budget Office (CBO), US government risk. default on your debt in the near future stems from reaching its statutory debt limit of $31.4 trillion on January 19.
The CBO predicts that if the debt limit remains unchanged, the US government could be in hot water as soon like june. He pointed:
"CBO projects that if the debt limit remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations."
The CBO predicts that the federal budget deficit will be $1.5 trillion in 2023, which is $100 billion more than initially estimated in February.
It was emphasized that the outcome of the ongoing Supreme Court case regarding the cancellation of outstanding student loan debt could have a significant influence on total revenue by 2023.
It was also noted that a shortfall in tax revenue recorded through April has the potential to contribute to a larger deficit than initially anticipated, according to the report.
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However, based on its forecast data, the CBO does not expect a decline in deficit growth any time soon; annual deficits were forecast to “nearly double over the next decade,” reaching $2.7 trillion by 2033.
The CBO predicts that 2033 will see the highest level of national debt ever documented in the US, stating:
“As a result of those shortfalls, debt held by the public also increases in the CBO projections, from 98% of GDP at the end of this year to 119% at the end of 2033, which would be the highest level of US debt. never recorded. .”
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