‘An Unsustainable Path’; Federal Budget Deficit Increases by $38 Billion to $1.2 Trillion: Congressional Report

The federal budget deficit reached $1.2 trillion in the first eight months of 2024, marking a $38 billion increase from 2023, according to a federal report that has triggered alarms among economic analysts who warn of an “unsustainable path” if the borrowing continues. The Congressional Budget Office (CBO), a nonpartisan congressional review agency, reported that revenues were over 10 percent higher at $294 billion, while spending was 8 percent higher at $332 billion, compared to the same period from October to May in 2023. The CBO cited several factors contributing to the budget’s increase, such as spending predicted to surpass previous expectations and the additional costs that will come with international aid and student loan forgiveness that the Biden administration has vowed to carry out....