Photo: Brendan McDermid / Reuters
The Federal budget deficit, the U.S. may exceed one trillion dollars in the next fiscal year. This writes the Associated Press citing a report of the office of the U.S. Congress on the budget.
According to his forecast, in 2019 fiscal year, the deficit will amount to 960 billion dollars, and in the next, which will come in the US on October 1, will exceed a trillion. The Department also expects that in the next 10 years the us budget deficit will increase to 809 billion dollars.
The Congress noted that the pace of U.S. economic growth will slow from 2.3 percent in 2019, up 1.8 per cent on average over the next four years. The unemployment rate before the end of 2020 and will remain close to the current figure of 3.7 percent, but by the end of 2023 will increase to 4.6 percent.
According to the forecast, a decade later, the situation in the US will not improve and the budget deficit will continue to grow due to aging population and increasing health care costs. According to the Director of the office for budget Phillip of Swages to change the situation, the American authorities will have to raise taxes, cut spending, or take both actions at the same time.
The management explained their pessimistic forecast of the budget bill reached the American President Donald trump and the Congress. The document adopted at the 2020-2021 financial years, raises the debt ceiling for the period up to July 2021 and increases government spending.
Earlier, the office for budget said that by 2049 the US national debt will increase to 144 percent of GDP and will reach the highest level in the country’s history. In its report said that in 2019 the us national debt is 78 percent of the country’s GDP.
Video, photo All from Russia.