The figures, which corroborate earlier estimates by the Congressional Budget Office (CBO), suggest that this deficit is set to be the largest in the country’s financial history. The $ 3.3 trillion figure in 2009 is double the previous largest record of $ 1.4 trillion during the financial crisis.
The data released on Friday showed that the government has spent more than $ 6 trillion so far this year, a huge jump from the $ 4.4 trillion spent in its entirety of 2019. This increase was largely due to emergency relief efforts to combat the COIDID-19 epidemic. And caused the economic downturn.
Meanwhile, revenue remained largely unchanged, but only about half of the spending could leave the Treasury to borrow the balance.
The CBO estimates that accumulated debt will surpass the size of the entire economy next year and will break its World War II record in the coming years.
Budget watchers warned that excessive debt could reduce economic growth, raise interest rates and make it harder for governments to spend on their priorities as interest payments increase over time.
But they also say that debt is a secondary concern in times of economic crisis, when the focus should be on reviving the economy.