The federal government is borrowing an average of $5.3 billion per day this fiscal year, the U.S. Congressional Budget Office estimated Tuesday.
"The federal budget deficit was $1.6 trillion in the first 10 months of fiscal year 2023, the Congressional Budget Office estimates - more than twice the shortfall recorded during the same period last year," CBO said.
"Revenues were 10 percent lower and outlays were 10 percent higher from October through July than they were during the same period in fiscal year 2022." Fitch, considered one of the top three rating agencies in the world, raised concerns about the U.S. debt-to-GDP ratio in its announcement of the credit downgrade from a perfect AAA to AA , the next tier down.
"The deficit this year and next year are on track to be 50 percent larger than before the pandemic, despite the fact that the pandemic is over and the economy seems to be growing at a steady clip," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
"In Fitch's view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025," Fitch said.
"The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process." Experts have been raising the alarm about the skyrocketing federal debt for years.
"It won't be easy, but a bipartisan fiscal commission could provide the right opportunity to get those conversations started. With everything on the table - including all parts of the budget and tax code - our leaders should show the American people that they are capable of making the tough decisions to put our fiscal house back in order."
https://www.thecentersquare.com/national/article_5c26d8ee-3621-11ee-99d1-2f3e2222e9d2.html
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