The US operates on a fiscal year that goes from 1 October to 30 September. Its budget for fiscal year 2024-25 is likely to run a deficit of about $2 trillion on revenues of roughly $5 trillion (with outlays of above $7 trillion).
Also Read: US economy: Is stagflation making a comeback amid Trump turbulence?
To fund an ever-increasing deficit, which got materially worse after the covid pandemic, US federal debt has now touched 125% of gross domestic product (GDP), breaching its post-World War II high of 106%. The US national debt in 2025 will exceed $36 trillion at an average interest rate of about 3.3%, resulting in an annual debt-service requirement of about $1 trillion.
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