Report warns of looming threat as US Treasury faces risk of running out of funds.

2023-05-14

Summary: - US government's annual deficits will nearly double over the next decade: CBO report - There is a significant risk that the US government will no longer be able to meet its financial obligations as early as June due to having reached its statutory debt limit - The CBO predicts a federal budget deficit of $1.5 trillion in 2023, $0.1 trillion more than it estimated in February - The ongoing Supreme Court case regarding the cancellation of outstanding student loan debt could have a significant influence on the total revenue for 2023 - A shortfall in tax receipts recorded through April could lead to a larger deficit than initially predicted - Annual deficits are predicted to nearly double over the next decade, reaching $2.7 trillion in 2033 - Debt held by the public is also predicted to increase over the next ten years - Alameda's $38B IRS bill, Do Kwon kicked in the assets, Milady frenzy: Asia Express

Full article:

The United States Congressional Budget Office (CBO) has predicted that the U.S government's annual deficits will “nearly double over the next decade.”

The United States government faces a “significant risk” of no longer being able to meet all of its financial obligations as early as June, as per a recent report.

According to a May 12 report published by the U.S. Congressional Budget Office (CBO), the risk of the U.S. government defaulting on its debt in the near future stems from having reached its statutory debt limit of $31.4 trillion, on Jan 19.

The CBO predicts that if the debt limit remains unchanged, the U.S. government could be in hot water as early as June. It noted:

“CBO projects that if the debt limit remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations."

The CBO currently predicts a federal budget deficit of $1.5 trillion in 2023, which is $0.1 trillion more than it estimated in February.

CBO's Budget Outlook, May 2023 Update. Source: Congressional Budget Office

It was emphasized that the outcome of the ongoing Supreme Court case regarding the cancellation of outstanding student loan debt could have a significant influence on the total revenue for 2023.

A shortfall in tax receipts recorded through April has the potential to also lead to a larger deficit than initially predicted, the report noted.

How would a US debt default impact Bitcoin?

However, based on its projected data, the CBO does not anticipate a decrease in the deficit in the immediate future – in fact, it is predicted that the annual deficits will “nearly double over the next decade,” reaching $2.7 trillion in 2033.

CBO predicts that debt held by the public will also increase over the next ten years. It was noted:

“As a result of those deficits, debt held by the public also increases in CBO’s projections, from 98 percent of GDP at the end of this year to 119 percent at the end of 2033.”

Magazine: Alameda’s $38B IRS bill, Do Kwon kicked in the assets, Milady frenzy: Asia Express



Source: cointelegraph.com

Promoted Promote

Promoted
Promote
Name Symbol SYM Chain Market Cap Launch Votes