US National Debt Passes $40tn After Doubling in a Decade

US Treasury Department says that the total U.S. debt has topped USD 40 trillion for the first time, drawing fresh warnings that a fiscal crisis is ​brewing as ballooning costs for social safety-net programs and interest payments far outstrip revenues held back by tax cuts.

The Treasury's latest daily cash and debt balances statement showed total public debt outstanding at USD 40.047 trillion on Tuesday, a total that includes Treasury securities held by the public of USD 32.266 trillion and intra-governmental debt holdings of USD 7.782 trillion.

The federal government's IOU has now more than doubled in less than a decade, from USD 19.95 trillion when President Donald Trump was sworn in for the first time in January 2017. 

The rise reflects years of heavy spending under both administrations of US President Donald Trump and Former US President Joe Biden, along with higher interest payments that have steadily added to the total. 

In 2016, the national debt stood at just under USD 20 trillion. 

The Congressional Budget Office (CBO) had projected overall borrowing would reach USD 39.6 trillion only by the end of fiscal year 2026.

The faster-than-expected rise has sharpened concerns about how quickly the government's borrowing needs are growing, and what that means for future interest costs.

The CBO says the US is nearing its USD 41.1 trillion debt ceiling, with debt projected to climb to about USD 64 trillion by 2036.

Sources: BBC | Reuters