Federal Debt to Hit $2.3 Trillion for 2021, Not Taking Into Account Biden Stimulus Plan

WASHINGTON, D.C. – According to reports, the federal budget deficit in the current fiscal year is expected to hit $2.3 trillion, or 10.3 percent of gross domestic product (GDP). This will cause the government’s debt to exceed the size of the economy in 2021, and that’s not even taking into account President Joe Biden’s proposed $1.3 trillion COVID-19 stimulus plan, the Congressional Budget Office (CBO) says.

While the 2021 $2.3 trillion federal debt is currently lower than what the country experienced in 2020 – when it totaled $3.13 trillion, or 14.9 percent of GDP – it still represents dollar totals higher than before the COVID-19 pandemic hit and will be the second-highest level of debt in United States history.

According to the CBO, amount of the budget shortfall is $448 billion, which is 25 percent larger than their previous forecast. GDP is a comprehensive measure of U.S. economic activity. It measures the value of the final goods and services produced in the United States, and changes in GDP are the most popular indicator of the nation’s overall economic health, according to the Bureau of Economic Analysis.

The large amount of federal debt, said the CBO, can be attributed to costs associated with the government’s efforts to address the effects of the ongoing COVID-19 pandemic, including the $2.2 trillion CARES act in March 2020 and an additional $900 billion package passed in December 2020.



Big Tech is using NewsGuard to censor us severely reducing our revenue. You can support our mission of truthful reporting by making a contribution. Honest journalism is incredibly important to our democracy; we refuse to let Silicon Valley crush us into just another regurgitated, propaganda driven, echo-chamber of lamestream media and we need your support. You can also help by signing up for our featured story emails.
 

Obviously, large federal debts will inflate the national debt further; as of now, the public share of the $27.9 trillion national debt is $21.8 trillion, which is over 100 percent of GDP; the CBO says that number could be as high as $35.3 trillion – or 107 percent of GDP – by 2031.

Comment via Facebook

Corrections: If you are aware of an inaccuracy or would like to report a correction, we would like to know about it. Please consider sending an email to corrections@publishedreporter.com and cite any sources if available. Thank you. (Policy)