The US national debt has exceeded $40 trillion, according to US Treasury Department data, marking a record level as federal borrowing continues to rise. The increase comes despite President Donald Trump’s pledge to reduce government spending and improve the country’s fiscal position.
Key developments:
- Gross federal debt increased by around $3tn over the past year.
- Debt held by the public now exceeds $32tn, roughly matching US GDP.
- Interest payments on the debt now surpass annual US defence spending.
Treasury Secretary Scott Bessent has pledged to reduce the budget deficit to 3% of GDP by the end of President Trump’s term. However, analysts say tax cuts, higher defence spending proposals and persistent budget deficits continue to add to long-term debt, with non-partisan forecasts projecting further increases over the next decade.
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