The U.S. federal deficit increased 156% from expenditures as revenues continue to decline.
A statement from the Department of Treasury shared that June expenditures rose $96 billion, up 18% from last year.
Income from taxes fell 9% to $418 billion.
High interest rates are partly at fault for the increase in expenditures.
According to the Congressional Budget Office (CBO), federal debt is expected to pass its historical high in 2029, reaching 107% of gross domestic product (GDP).
“Such high and rising debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook,” the CBO said in a statement.
Reporting from The Epoch Times:
The CBO report warns that if the federal debt continues to rise in relation to GDP at the projected rate, there “would be an elevated risk of a fiscal crisis” in which investors lose confidence in the U.S. government’s ability to repay its debt and make interest payments. This, in turn, could cause interest rates to “increase abruptly, inflation to spiral upward, or other disruptions to occur,” CBO warned. ... “Concerns about the government’s fiscal position could lead to a sudden and potentially spiraling increase in people’s expectations for inflation, a large drop in the value of the dollar, or a loss of confidence in the government’s ability or commitment to repay its debt in full, all of which would make a fiscal crisis more likely,” the report states.
