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The US government deficit is expected to hit a record $ 3.3 trillion this year


U.S. government debt is expected to exceed the size of the economy for the first time since World War II in 2021, and deficits are projected to hit a record $ 3.3 trillion this year

  • The Congressional Budget Office released its latest report on federal deficits and debts on Wednesday
  • The federal debt held by the public is expected to rise sharply this year to 98 percent of gross domestic product (GDP)
  • The previous high point was recorded in 1946 due to the large deficits in World War II
  • The report also predicts the U.S. government's budget deficit will hit a record $ 3.3 trillion this year, the worst since World War II
  • The surge is mainly due to the economy devastated by COVID-19 and the federal bailout packages passed by the government in response

U.S. government debt will exceed the size of the economy next year for the first time since World War II due to the coronavirus pandemic.

The Congressional Budget Office released its latest report on federal deficits and debts on Wednesday.

According to the report, federal public debt is expected to soar sharply this year to 98 percent of gross domestic product (GDP), compared to 79 percent at the end of 2019.

Debt is expected to exceed 100 percent in fiscal 2021 and rise to 107 percent in 2023. This is the highest value in the country's history.

The Congressional Budget Office released its latest report on federal deficits and debts on Wednesday. The federal debt held by the public is expected to rise sharply this year to 98 percent of gross domestic product (GDP)

The previous high point was recorded in 1946 due to the large deficits in World War II.

Only a handful of counties, including Japan, Italy, and Greece, have debt that is greater than the size of their economies.

The fiscal year begins on October 1st and ends on September 30th.

The report also predicts the U.S. government's budget deficit will hit a record $ 3.3 trillion this year, the worst since World War II.

The projected deficit of $ 3.3 trillion for 2020 is more than three times the deficit recorded last year.

This surge is largely due to the economy hit by the COVID-19 pandemic and the federal bailout packages adopted by the government in response.

So far this year, more than $ 3 trillion in emergency coronavirus pandemic aid has been enshrined in law.

The report also predicts the U.S. government's budget deficit will hit a record $ 3.3 trillion this year, the worst since World War II

The report also predicts the U.S. government's budget deficit will hit a record $ 3.3 trillion this year, the worst since World War II

Federal spending is expected to account for 32 percent of GDP in 2020, which is around 50 percent higher than the previous year and the highest percentage since 1945

Federal spending is expected to account for 32 percent of GDP in 2020, which is around 50 percent higher than the previous year and the highest percentage since 1945

This huge federal spending has led to an increase in the already high deficit and national debt this year.

CBO's most recent forecast does not include another round of coronavirus aid that Congress could consider that could exceed $ 1 trillion.

Deep disagreements among lawmakers have slowed work on this measure.

At 16 percent of the gross domestic product, the deficit this year would be the worst since 1945 when World War II ended.

Federal spending is expected to account for 32 percent of GDP in 2020, which is around 50 percent higher than the previous year and the highest percentage since 1945.

The report predicts a decline in revenue from 16.3 percent of GDP in 2019 to 15.5 percent in 2021.

This is primarily due to the economic disruption caused by the coronavirus pandemic and the response from the federal government to it.

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