The total public debt of the federal government of the United States exceeded thirty-four trillion dollars (764.6 trillion crowns) for the first time. It was announced by the US Treasury Department. Members of Congress are now preparing for another series of fights over the funding of the federal government, Reuters reported.
The Treasury’s daily report showed outstanding public debt rose to $34.001 trillion. The debt, which counts toward the federal debt ceiling, then rose to $33.89 trillion.
This category does not include, among other things, guaranteed debt of government agencies or debt issued by the Federal Finance Bank.
In September, the federal debt crossed the thirty-three trillion dollar mark due to the growing deficit of the federal government. This was caused by falling tax revenues and rising federal spending.
Congress will next week address government spending through September. Republican lawmakers and the White House agreed last June to temporarily lift the national debt limit, averting the risk of default.
Lawmakers should also approve emergency aid for Ukraine and Israel. However, reaching a compromise will probably be more difficult given that the November presidential and congressional elections are approaching.
The national debt crossed the thirty-four trillion dollar mark several years earlier than predicted before the pandemic. According to a January 2020 forecast by the Congressional Budget Office, the gross federal debt was projected to exceed $34 trillion in fiscal year 2029.
Gross debt also includes money the government owes itself. Debt held by the public is $26.9 trillion. That’s roughly the same as the U.S. gross domestic product, the AP reported.
But foreign buyers of US debt, such as China, Japan, South Korea and European nations, have reduced their holdings of US Treasuries. Analysis by the Peterson Foundation showed that the share of US debt held by foreign buyers peaked at forty-nine percent in 2011, falling to thirty percent by the end of the year.
