US Deficit Surges
• The US deficit has surged to $1.392 trillion year-to-date from October 2022 to June of this year – a 170% increase from the same time frame in the previous year.
• Government spending is exceeding its revenues by over a trillion dollars just eight months into the current fiscal year.
• Former Treasury Secretary Larry Summers recently weighed in on America’s deficit, saying he believes the government will have very little choice but to substantially raise taxes to cover its increasing deficit.
Treasury Department Report
The US government’s budget deficit surged to $1.392 trillion as reported by the newly released Treasury Department report for 2023 fiscal year which runs from October 1st, 2022 to September 30th, 2023. According to the latest numbers from the agency, it was revealed that the government spent more than $4.80 trillion from October 2022 to June 2023, while generating $3.413 trillion in taxes and other revenues.
Fitch Rating Agency Analysis
The rating agency Fitch says that while the United States continues to maintain a credit rating of “AAA”, it is currently on negative watch due to the nation’s fiscal and debt trajectories. Fitch believes that some of these strengths could be eroded over time by governance shortcomings such as an inability for governments’ spending and revenue streams not being able balance each other out properly or efficiently enough leading up deficits like this one seen today.
Larry Summers Comments
Former Treasury Secretary Larry Summers recently weighed in on America’s deficit, saying he believes the government will have very little choice but to substantially raise taxes to cover its increasing deficit if it wants any hope of staying within budget or even balancing out their financial statements at all anymore given this staggering amount of debt now owed due solely in part because of their uncontrolled spending habits over recent years and months since even before this fiscal year began back in October 2022 when this mess still had yet only begun forming itself into what we are seeing here today with these new alarming figures set forth by The Treasury Department’s report for 2023 fiscal year..
Ultimately, it looks as though The US budget deficit has surpassed $1,390 billion dollars with no sign of stopping anytime soon unless drastic measures are taken such as raising taxes or cutting back on government spending entirely in order for them regain control their finances again before they become too far gone beyond repair which would be disastrous not just for our economy here domestically but all around world wide where people rely upon US currency so heavily everyday without fail regardless of what goes on behind closed doors at The White House or Capitol Hill there in Washington Dc ..