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Total U.S. government debt eclipsed $16 trillion for the first time Friday, new government data show, as total federal borrowing continues marching toward the $16.394 trillion borrowing limit.
The Treasury Department said total government debt hit $16,015,769,788,215.80 on Friday, up $25 billion from the day before. The amount of federal debt subject to the borrowing limit is actually slightly less, as it doesn’t include several types of borrowing, and it stood at $15.977 trillion on Friday.
The government is projected to run a deficit of between $1.1 trillion and $1.2 trillion in the fiscal year that ends Sept. 30, meaning that spending will outpace tax revenue by that amount over 12 months.
The deficit remains large because of a combination of factors, though Democrats and Republicans are at odds over who is more to blame for the rising debt levels. Federal spending remains high and tax revenue remains low as a share of the economy, compared with prior years.
The government is currently running an average monthly deficit of $100 billion and is likely to hit the debt ceiling sometime in late December. The Treasury Department then can take emergency steps for several months to prevent the government from missing payments. Once the government hits the debt ceiling, it can no longer borrow money in excess of the statutory limit.
(Source: b3rg)
