How much debt is the US government in? Since the mid-1970s, the U.S. government has been consistently taking on more and more debt to fund its deficit spending.
This is a consequence of both past tax cuts, but also recent credits and stimulus packages amidst the pandemic that have made it difficult for the nation’s finances to balance out.
To better understand these mounting figures and what consequences they may have for our economy, it’s important to examine exactly how much debt is sitting on our government ledger at this very moment — as well as where most of this loan money is coming from, and how we can potentially return to fiscal responsibility amid an ever changing global landscape.
How Much Debt Is The US Government In?
The national debt of the United States has been increasing steadily over the past decade, and as of December 2022 it stands at a staggering $210 billion. This amount is used to pay interest on the various securities that make up the total debt, and is 15% of all federal spending.
Despite this large sum, interest expenses have remained relatively stable due to low interest rates and investors’ judgement that the U.S. Government has a very low risk of default.
The Debt Ceiling
The debt ceiling, or debt limit, is a restriction imposed by Congress on the amount of outstanding national debt that the federal government can have. Once the debt ceiling is reached, the federal government cannot increase the amount of outstanding debt, losing the ability to pay bills and fund programs and services.
The Treasury can use extraordinary measures authorized by Congress to temporarily suspend certain intragovernmental debt allowing it to borrow to fund programs or services for a limited amount of time after it has reached the ceiling.
Since the United States has never defaulted on its obligations, the scope of the negative repercussions related to a default are unknown but would likely have catastrophic repercussions in the United States and in markets across the globe.
Tracking the Debt
The Bureau of the Fiscal Service is a government agency that was established in 2012 and operates under the Department of the Treasury. Its primary purpose is to manage all federal payments and collections, as well as provide government-wide accounting and reporting services.
One of its most important functions is to track and report on the national debt, which is mandated by the U.S. Constitution. This includes providing regular statements and accounts of all public money receipts and expenditures, which are published on a regular basis.
How much has the U.S. government collected this year?
The U.S. government has collected a total of $1.03 trillion in fiscal year 2023, which is an increase from the previous year’s collection of $988 billion.
This revenue comes from various sources such as individual income taxes, corporate income taxes, payroll taxes, and excise taxes.
The majority of the revenue comes from individual income taxes, which accounted for nearly half of the total revenue collected this year.
How much has the U.S. government spent this year?
The U.S. government has spent an incredible amount of money this year in order to ensure the well-being of its citizens. In fiscal year 2023, the U.S. government has spent a total of $1.45 trillion dollars on various programs and initiatives that benefit the American people. This includes spending on social welfare programs, infrastructure projects, defense spending, and other government services.
Conclusion
The US government debt level currently stands at a staggering $210 billion, and is funded by the debt ceiling and other payments and collections of public money. For fiscal year 2023, the US government has collected $1.03 trillion in revenue and spent $1.45 trillion on various infrastructure projects, social welfare programs, defense spending, and other services.
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