U.S. budget deficit projected at $1.9 trillion, hitting 7% of GDP—comparable to the Global Financial Crisis. DOGE will need to cut deep!

Sharing is Caring!

The U.S. budget deficit is projected to reach $1.9 trillion in fiscal year 2025, which amounts to 7% of the country’s GDP. This level of deficit is comparable to the red ink seen during the Global Financial Crisis.

Key Figures

  • Revenue: $5.2 trillion (17.1% of GDP)
  • Spending: $7 trillion (23.3% of GDP)
  • Deficit: $1.9 trillion (6.2% of GDP)

Spending Breakdown

  • Mandatory Spending: $4.2 trillion (14.0% of GDP)
  • Discretionary Spending: $1.8 trillion (6.1% of GDP)
  • Net Interest: $952 billion (3.2% of GDP)
See also  A U.S. sovereign wealth fund while $36.5T in debt? That’s just leveraged speculation.

Revenue Breakdown

  • Total Revenue: $5.2 trillion (17.1% of GDP)
  • Projected Growth: Revenue is expected to grow from $5.2 trillion in 2025 to $8.0 trillion (18.3% of GDP) by 2035.

Economic Impact

The high deficit is driven by a persistent gap between spending and revenue. The projected growth in debt and deficits is influenced by various factors, including tax policies and economic assumptions.

See also  They Really Do Want Us To Be Weak Physically, Mentally, Emotionally, Financially And Spiritually So That We Will Become Dependent On Them

Future Projections

  • Debt-to-GDP Ratio: Expected to grow from 98% in 2024 to 118.5% by 2035.
  • Interest Costs: Projected to increase steadily, from 9% of federal revenue in 2021 to 18% in 2025, and 22% by 2035.

Sources:

https://www.msn.com/en-us/money/companies/trump-to-announce-ai-infrastructure-investment-backed-by-oracle-openai-and-softbank/ar-AA1xBIYg

https://www.datacenterdynamics.com/en/news/trump-plans-to-announce-100bn-stargate-ai-data-center-investment-from-openai-softbank-and-oracle/

https://www.ft.com/content/financial-times-announce-venture-to-fund-ai-development-in-us

https://x.com/JeffWeniger/status/1881432426980978853


69 views