(FreePressBeacon.com) – In one of the greatest proofs of the inadequacy of the Biden-Harris administration, the United States now faces a daunting fiscal challenge as the budget deficit balloons to $1.8 trillion, the third-largest in the nation’s history.
With the economy wavering under this financial strain, conservatives are questioning the government’s fiscal discipline.
The staggering amount only intensifies concerns over national debt and excessive government spending.
The rapid increase in government spending is a key factor in this budget deficit. In fiscal 2024, the deficit expanded by $138 billion over the previous year, reflecting a worrying trend.
Notably, interest payments on the national debt surged by nearly 30%, surpassing a significant $1 trillion.
Some argue this rise is a direct consequence of liberal fiscal policies enacted in Washington, The Insider Paper notes in a report.
Deficit figures over the past few years have raised alarms. The 2020 pandemic year saw a record $3.1 trillion deficit due to emergency government interventions.
In a stark reversal, the Supreme Court’s recent decision to strike down President Biden’s student loan forgiveness program significantly reduced planned expenditures, impacting the deficit calculation by over $330 billion.
The overall deficit expanded by $138 billion for the fiscal year, said the Treasury Department, cited by The Business Inquirer.
Federal expenditure in key areas also played a role in the ballooning deficit.
Social Security and defense spending saw substantial increases.
U.S. receipts rose during this fiscal period, driven primarily by individual and corporate tax contributions.
However, these receipts remain below historical GDP averages, adding further strain to an overstretched budget.
The deficit, now 6.4% of GDP, emphasizes the financial burden carried by America. Federal borrowing also surged, with public debt increasing by $2.0 trillion.
These figures paint a troubling picture for fiscal conservatives advocating for sustainable economic policies.
While some within the White House critique past tax cuts as exacerbating the situation, others see them as essential for economic growth.
“This year marks the third highest US deficit, behind 2021 and 2020, according to the Treasury,” the Inquirer notes.
The shadow of the national debt looms large as a pivotal issue in the upcoming presidential election.
Fiscal conservatives are urging for a redirection of current priorities to curb wasteful spending.
The sluggish rate of interest cuts by the Federal Reserve only complicates the situation.
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