Key Insights
- The US national debt has exceeded $33 trillion, marking a historic high, as reported by the Ministry of Finance.
- With an estimated population of around 340 million, this figure translates to a per-citizen debt burden of approximately $97,000.
- To address the situation, a law was passed temporarily suspending the national debt ceiling until 2025, preventing a technical default.
The total US national debt exceeded $33 trillion for the first time in history, according to data from the country’s Ministry of Finance. Over three months (from June 16), the total US national debt increased by $1 trillion.
A report from the US Treasury a week earlier showed that the budget deficit for 11 months of the fiscal year amounted to $1.5 trillion. This is 61% more than the same period in 2022.
A $97,000 debt on every US citizen
According to the US Treasury Department, the country’s national debt as of September 18 amounted to $33.044 trillion. With an estimated population of approximately 340 million, this staggering figure translates to an average debt burden of roughly $97,000 per US citizen.
The US national debt is the total debt of the federal government to creditors: private individuals, including foreign investors, states or large funds. The budget deficit in the United States has been observed for more than 20 years: to cover it, Washington borrows funds.
At the beginning of this year, the US national debt exceeded the established ceiling of $31.4 trillion. After warnings from the US Treasury about the threat of default in early June, the authorities agreed to suspend the government debt limit until early 2025 in exchange for a reduction in government spending. Two weeks later, on June 16, the national debt exceeded $32 trillion. The US debt crossed the $31 trillion mark in October 2022.
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US national debt could well reach $50 trillion by 2030
The New York Times has estimated that the US national debt could well reach $50 trillion by 2030, despite measures to cut budget expenditures. Congress is currently discussing funding for federal government spending. The deadline for passing a package of budget appropriations laws is September 30.
Before then, Congress must either pass the bills or agree to a short-term extension of federal funding at existing levels. Otherwise, the United States will face its first shutdown since 2019.
Republicans and Democrats in the House and Senate remain divided on how to avoid a government shutdown. Lawmakers urged their leaders to focus on legislation that would allow the government to continue functioning after September 30, writes NYT.
In an interview with CNBC on Monday, September 18, US Treasury Secretary Janet Yellen said she was comfortable with the country’s fiscal path as interest costs as a share of the economy remained manageable, but she cautioned that it was important to be mindful of future spending.