The National Debt Clock in New York City is shown last November. The total is about $100 billion higher now. (Photo:Reuters)
The US intends to borrow $955 billion for the fiscal year 2018, according to a document released on January 31, which increases by 84 percent on a yearly basis, the Washington Post reported.
The difference is partly due to the new tax law, as the Congressional Budget Office predicted that tax receipts will drop by $10 billion to $15 billion per month.
The heated debate in Congress on where to allot more money may be another reason for the increase.
The report said, Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, blames both parties for the situation, who claim they will be “fiscally responsible,” but pass legislation, adding to the debt burden.
Concerns over the borrowing and the likelihood of higher inflation disturb investors. “Some of my Wall Street clients are starting to talk recession in 2019 because of these issues. Fiscal policy is just out of control,” said Peter Davis, a former tax economist in Congress who now runs Davis Capital Investment Ideas.
The Committee for a Responsible Federal Budget predicted the US deficit will hit $1 trillion by 2019.
(Compiled by Wu Kai)