US NATIONAL DEBT SURPASSES $40 TRILLION AMID RISING BORROWING COSTS
Read Time:1 Minute, 41 Second
Agency Report
The United States’ gross national debt has surpassed $40 trillion for the first time, according to data released by the US Treasury Department on Wednesday.
Total public debt outstanding stood at $40.05 trillion at the close of business on Tuesday, exceeding an earlier forecast by the Congressional Budget Office that US borrowing would reach $39.4 trillion by the end of the 2026 fiscal year.
The latest increase comes amid growing government obligations linked to Social Security and healthcare, as well as rising interest payments on the country’s debt.
The surge in borrowing has also raised concerns over the sustainability of US government finances, with analysts pointing to persistent federal budget deficits.
Jessica Riedl, a budget and tax fellow at the Brookings Institution, said the United States had been on an “unsustainable path” with its deficits, noting that the country had recorded annual deficits of roughly $2 trillion in recent years, even during periods of peace and economic growth.
She said the deficit had risen from levels of about three to four per cent of Gross Domestic Product, which previously concerned financial markets, to approximately six to seven per cent.
The rising debt comes as borrowing costs have increased significantly. Yields on long-term US Treasury bonds rose on Tuesday to their highest level since 2007, reflecting concerns over US deficit spending and price pressures linked to the ongoing Middle East conflict.
The higher yields mean the US government faces increased costs when refinancing existing debt, adding further pressure to its finances.
The Treasury Department moved on Wednesday to stabilise the long-term bond market, following the rise in yields.
The latest figures also come amid debate over President Donald Trump’s trade policies, including tariffs that have faced legal challenges and have been cited as contributing to uncertainty around the US economy.
The US government continues to borrow to finance the gap between its expenditure and revenue, with the growing debt burden becoming an increasing concern for financial markets and policymakers.
AFP
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0