New Delhi: America, the world’s largest economy, is moving towards the largest fiscal deficit in history. It has reached $624 billion in the first two months of the fiscal year itself. This is 64% more than last year and more than during the Corona epidemic in 2020. If the government’s deficit continues to increase at this rate, it may reach $3.5 trillion for the first time in the country’s history. The country’s fiscal deficit due to the stimulus package during the pandemic was $3.1 trillion. Last year it was $1.8 trillion. The Federal Government in America spent $669 billion in November. Government’s expenditure is increasing but its tax revenue collection is continuously decreasing. In November it remained at $380 billion. This is the 17th consecutive month when the government’s expenditure exceeded its earnings i.e. revenue. During this period, America’s debt has increased from $27 trillion to $36.2 trillion. It is believed that during the next decade, about 25% of the total tax revenue collection of the government can go to pay the interest on the loan.
America’s situation becomes worst in 30 years, 18% of revenue is going to pay interest
America’s debt
The US Federal Government has a domestic debt of $26.4 trillion and an external debt of $7.9 trillion. The government owes $5.2 trillion of the Federal Reserve, $3.7 trillion of mutual funds, $1.6 trillion of depository institutions, $1.7 trillion of state and local governments, $5.7 trillion of US holders of savings bonds, $1 trillion of pension funds, $7 trillion of intragovernmental debt, and $480 Arab Insurance Is of companies. Talking about foreign debt, Japan has the highest debt of $1.1 trillion, China has $820 billion, Britain has $680 billion and other countries have $5.3 trillion.