US GDP compared to debt, 2016-24. (Jane’s)
The US Government’s Accountability Office (GAO) released its annual report to the country’s Congress on Financial Health on February 5th. “The federal government is on an unsustainable fiscal path,” he said, saying spending on public debt is outweighing spending. defense.
The report says difficult budget and policy decisions are required to manage national debt, including new spending and revenue policies, “to address sustained deficits and reduce borrowing needs of the people.” .
According to the report, from the end of 2024 at the end of September 30th of the fiscal year (FY) of 2024 (2024), the debt held by the public was USD 28.2 trillion, which is USD 2 trillion higher than 2023. Nearly 98% of US GDP was high. A separate US$7.1 trillion debt in Treasury securities held by federal accounts typically brings the total federal debt to USD35.3 trillion.
As of December 31, the debt held by the public had increased to US$28.7 trillion, the report said.
GAO noted that despite strong economic growth in 2024, the deficit exceeded US$1.8 trillion for the fifth consecutive year, GAO said it had “an increasingly large annual fiscal deficit.” This is due to the following. From 2017 to 2024, debt totaled USD 14 trillion, up 50% of the end of fiscal year 2024 figure, the report added.
Deficits and interest
Federal program spending in 2024 totaled nearly USD 5.9 trillion in revenue, resulting in a major deficit of USD 95.1 billion. GAO noted that program spending has outperformed revenues per fiscal year since 2008.
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