The U.S. Congressional Budget Office says that the national debt in America is on track to surpass $56 trillion U.S. by 2034.
The national debt is forecast to balloon in coming years as government spending and interest charges outpace the amount of tax revenue collected in Washington, D.C.
Rising costs for Social Security and Medicare due to a rapidly aging population are contributing the most to the U.S. debt, says the Congressional Budget Office in a new report.
Despite dire warnings about the future impact of the national debt on the U.S. economy, the federal government is expected to continue running large budget deficits.
The budget deficit for 2024 is projected to reach $1.9 trillion U.S., up from a previous forecast of $1.6 trillion U.S., as the government spends more money than it collects through taxes.
Debt held by the American public is projected to reach 122% of gross domestic product (GDP) by 2034, up from 99% this year.
While both Democrats and Republicans in Congress have expressed concerns about the national debt, neither political party seems willing to reign-in spending or raise taxes.
Also contributing to the national debt in America has been the Biden administration canceling more than $100 billion U.S. of student loans and Trump era tax cuts, said the Congressional Budget Office.
High interest rates charged on the debt is also causing problems. The budget office forecasts that annual interest costs on the debt will reach $1.7 trillion U.S. in 2034, up from $892 billion U.S. this year.
The national debt and government spending are expected to figure prominently in the U.S. presidential election taking place this autumn.
