WASHINGTON (Pakistan Point News / Sputnik - 22nd September, 2020) The US Federal debt is growing so fast under the Trump administration that it is now projected to be as large as the country's annual Gross Domestic Product (GDP) by the end of this year, the Congressional Budget Office (CBO) announced in a report.
"By the end of 2020, federal debt held by the public is projected to equal 98 percent of Gross Domestic Product - its highest level since shortly after World War II," the report said on Monday.
The CBO pointed out that if current laws governing taxes and spending generally remained unchanged, the federal debt is projected for the first time to be 100 percent of GDP in 2021 and reach its highest level in the nation's history of 107 percent of GDP by 2023.
"Debt would continue to increase in most years thereafter, reaching 195 percent of GDP by 2050," the report said.
The CBO also said that deficits in coming decades are projected to be large by historical standards. Deficits would increase from 5 percent of GDP in 2030 to 13 percent by 2050 - a percentage that would be larger every year than the average deficit of three percent of GDP over the past half century, the CBO added.
