The federal government is on track to borrow some $955 billion this fiscal year, the first one in which President Donald Trump is fully in charge of the budget, The Washington Post has reported.
This is nearly double the $519 billion the government borrowed the previous fiscal year and is the highest amount of borrowing in six years.
This is also the first time borrowing has increased this much as a share of GDP in a period of non-recession since the Reagan administration, Evercore ISI head of fiscal analysis Ernie Tedeschi told the Post.
The Congressional Budget Office this past week said the government will most likely run out of cash in the first half of March, earlier than what had been expected, due to less revenue coming in following the Republican tax cut law enacted in December, according to The Hill.
Both parties are to blame for adding to the debt, Committee for a Responsible Federal Budget senior policy director Marc Goldwein told the Post, with the latest example being the GOP tax legislation. The law is expected to bolster the debt by some $1 trillion, even accounting for economic growth, according to nonpartisan analysis from the Joint Committee on Taxation.
The Trump administration forecasts borrowing more than $1 trillion next year and over $1.1 trillion in 2020, even though he campaigned on reducing the national debt.
Treasury Secretary Steve Mnuchin has been pressing congressmen to increase the debt ceiling as soon as possible, according to The Hill, and lawmakers also need to pass a funding bill before February 9 in order to keep the government open.
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