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US Federal Budget Deficit Surges by $400 Billion, Sparks Debate on Fiscal Policy and National Debt Crisis

(photo: Bloomberg)

The US federal budget deficit has surged by $400 billion.

Highlights Military Aid and Debt Costs

$400 billion increase in this year’s federal deficit, up 27% from earlier estimates. Key factors include new military aid, higher student loan, Medicaid costs, and increased FDIC expenses due to banking crises. Projected debt could reach 122% of GDP by 2034 due to healthcare and aging population costs. President Biden’s administration, aiming for deficit reduction, faces criticism amid rising borrowing. The White House proposes cutting the deficit by $3 trillion over a decade, funded by $4.9 trillion in new taxes, urging Congress to avoid adding to debt through proposed tax cuts, according to the report of PBS.

READ ALSO: $50 Billion Tax Crackdown: Treasury And IRS Unveil Plan To Close Loophole, Targeting $160 Billion Annual Tax Gap! 

(photo: Pittsburgh Post-Gazette)

Republicans Push to Reverse Biden’s Spending Amid National Debt Crisis

House Republicans, led by Chairman Jodey Arrington, aim to cut back Biden administration spending focusing on reducing Social Security and Medicare costs. Michael A. Peterson warns of a growing national debt crisis worsened by rising interest rates and more borrowing. The upcoming elections will determine fiscal decisions on tax cuts, healthcare subsidies, and the debt limit.

READ ALSO: 48% Of NYC’s Elderly Face Food Insecurity: Study Reveals Struggles Of 1.8 Million Older Adults 

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