US national debt surpasses the $32 trillion mark – US Treasury Department reports

Washington – US national debt has crossed the limit of $32 trillion. It is a new record level of debt burden on the US economy. The US national debt has increased by four trillion dollars after Joe Biden took over as President. Two weeks ago, the US Congress passed the ‘Fiscal Responsibility Act 2023’ and suspended the debt limit till 2025. Against this background, the new figures that have surfaced are noteworthy.

Last year, in October, the US debt had crossed the limit of 31 trillion dollars. After this, the US national debt has increased by 1 trillion dollars in just eight months. The issue reflects the sheer scale and pace of debt the Biden administration took. The Biden administration’s spending has increased significantly compared to the previous US administrations. Instead of stopping it, there seems to be a heavy increase in wasteful expenditure, causing an increase in the debt burden.

Last month, the US Congressional Office drew attention to the dangerous deficit in the country’s economy. The US fiscal deficit under the leadership of President Joe Biden has reached close to one trillion dollars, the Congressional Budget Office (CBO) announced. These figures are for the seven months from October 2022 to April 2023. Also, this deficit has increased because of a mismatch of income and debt, as claimed by the CBO in its new report.

After this, the US Treasury Department exposed the Biden administration’s inefficiency by announcing that the debt burden had reached $32 trillion. From this, eight trillion dollars in debt have been taken from foreign governments and international investors, and China has the largest share. The US think tanks have drawn attention to the fact that the Central Bank of America continuously increases the interest rate, which is a danger to the US economy.

In 2020, the Congressional Budget Office (CBO) presented a report. It was estimated that the United States would exceed $30 trillion in debt by 2025. However, this limit was crossed three years ago due to the Biden administration’s policies. As a result of the increasing burden of debt, a total of five trillion dollars in interest will have to be paid on this debt for the next decade. Analysts have also expressed such a possibility. In such a scenario, it is being warned that the amount of interest to be paid by the United States will be more than the defence expenditure in the next few years.

After the recession of the year 2008-09, the debt burden of the US economy started increasing significantly. The US economy’s debt has increased by over $21 trillion over the past 15 years. Federal Reserve chief Jerome Powell warned on this issue, saying that the debt burden is rising faster than the US growth rate.