The federal debt of the government of United States has been expected to skyrocket in the coming decade as per the forecast of the budget which had taken place on this Tuesday.
The debt which had been held by the people has been expected to see arise to a level of $31.4 trillion when the decade ends in 2030 which is equal to a level of 98% of the Gross Domestic Product. This is the highest it has been since the Second World War.
The gap that exists between revenue and spending is going to widen under the presence of the policies which is going to make it hit a level of 180% of the GDP by the year 2050 which is at a level that it has never reached.
The rise in the debt is going to dampen the growth in the time to come as there is a rise in the debt of the holders which is going to reduce the household income of the United States.
There is a projection of this debt to increase at a level of $1.3 trillion a year in the coming decade.
As the interest rates are lower right now the authorities has said that this is a time where the fiscal challenges need to be addressed. The fiscal policy may be used as a major tool for addressing the challenges which the nation has been facing.
The changes in the long term must be made for addressing the situation of the budget as there is a growth in the debt at a path which is not sustainable as per the experts. The economy has been expected to grow at an average of 2.2%.