- U.S. budge deficit for June hits a record high of $864 billion
- U.S. national debt on its way to a record $27 trillion.
With the coronavirus outbreak still forcing some businesses to stay closed, federal spending continues in an attempt to provide relief. Last month, the US government spent over $1.1 trillion while only receiving $241 billion. This massive unbalance resulted in a record $864 billion budget deficit for the month of June. In comparison, the deficit for the entire fiscal year of 2019 was just under a trillion, and even this was considered large.
A large portion of the deficit increase was due to the Paycheck Protection Plan, The Washington Post reports. The Payment Protection Program is a program that helps small businesses by providing them with loans to keep their business afloat.
U.S. National Debt Is Surging
As reported previously by The Crypto Associate, the U.S. national debt is now making its way to $27 trillion after recently crossing $26 trillion for the first time. This may not be the end as The Committee for a Responsible Federal Budget, a non-partisan organization, estimates that federal debt will grow by $4 trillion in 2020.
With the national debt rising by over $3 trillion since January, concerns over the country’s ability to sustain the debt rise. Furthermore, the rising debt may have longer-term implications for the U.S. dollar.
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