The US government just spent nearly $1 trillion to service the interest on its rapidly growing national debt.
Data from the Congressional Budget Office (CBO) says the government ran an approximately $1.8 trillion budget deficit for the 2024 fiscal year, which ended on September 30th.
The government collected $4.918 trillion in revenue last fiscal year but spent a total of $6.752 trillion.
All in all, outlays for interest on public debt were the second-largest US government expense last fiscal year, just behind the estimated $1.448 trillion allocated to Social Security benefits.
News of the US government’s large budget deficit for the last fiscal year comes as the country’s national debt balloons to $35.693 trillion.
Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter says the nation’s public debt is significantly outpacing economic growth.
“US public debt has jumped $345 billion over [a three-day period], hitting another record of $35.7 trillion.
Since June 2023, federal debt has surged by a MASSIVE $4 trillion, or 14%. Over the same time period, US GDP is up just $1.5 trillion, or ~6%.
In other words, the national debt has outpaced the economic growth by 2.7 TIMES over the last 16 months. Outside of the pandemic crisis, US federal debt has never grown so rapidly.”
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