The United States government faces a “significant risk” of no longer being able to meet all of its financial obligations as early as June, as per a recent report.
According to a May 12 report published by the U.S. Congressional Budget Office (CBO), the risk of the U.S. government defaulting on its debt in the near future stems from it having reached its statutory debt limit of $31.4 trillion, on Jan 19.
The CBO predicts that if the debt limit remains unchanged, there is a risk that the U.S. government will be unable to meet its financial obligations as early as June. It noted:
“CBO projects that if the debt limit remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations.”
TheCBO currently predicts a federal budget deficit of $1.5 trillion in 2023, which is $0.1 trillion more than it estimated in February.
It was emphasized that the outcome of the ongoing Supreme Court case regarding the cancellation of outstanding student loan debt could have a significant influence on the total revenue for 2023.
A shortfall in tax receipts recorded through April has the potential to also lead to a larger deficit than initially predicted, the report noted.
However, based on its projected data, the CBO does not anticipate a decrease in the deficit in the immediate future – in fact, it is predicted that the annual deficits will “nearly double over the next decade,” reaching $2.7 trillion in 2033.
CBO predicts that debt held by the public will also increase over the next ten years. It was noted:
“As a result of those deficits, debt held by the public also increases in CBO’s projections, from 98 percent of GDP at the end of this year to 119 percent at the end of 2033.”
Disclaimer: CryptoNewsBook is an online aggregator that fetches latest crypto news from different sources. This article is provided for general information purposes ONLY and contains data fetched from third party sources; hence, we do not endorse its accuracy. For more details, kindly visit The Source. Please report any fake news or false statement to Our Support Team. If you are the original owner of this content and wish it to be removed on this platform, kindly forward your request to Our Support Team.
Also Note: Cryptocurrencies are unregulated, and no part of this article should be understood nor interpreted as a recommendation/advice. #s1
