US To Borrow a Record $3 Trillion as Spending Rises
Total Debt Taken By the US Reached Up To $25 Trillion
The Treasury Department of US to borrow a record $3 trillion this quarter as spending rises in the country for the payment of coronavirus relief funds. This money is expected to be used in large amounts to finance the economic rescue efforts that are being done in the wake of COVID-19 pandemic, which is affecting the country of the United States the most. As the number of confirmed COVID-19 patients in the US has reached 1,224,570 out of which 71,148 have died after suffering severe symptoms of the infection for several weeks under intensive care.
The United States growing debt
The United States is under immense stress due to being one of the most affected countries from the coronavirus pandemic. Due to the COVID-19 outbreak, the sudden influx of patients has increased pressure on the health care sector, which was not ready to handle the situation as multiple hospitals are currently suffering from a shortage of ventilators, personal protective equipment along with other essential medical supplies required for the treatment of COVID-19 infected patients.
The total amount of debt taken by the United States government has reached near $25 trillion, as US to borrow a record $3 trillion more to control the growing coronavirus outbreak in the country. The general population of the country is borrowing money to stabilize their businesses, which were critically affected by the coronavirus pandemic. It is anticipated by the Treasury Department that another debt of $677 billion in the third quarter of the year would be required to fulfill the demands of the country.
The government of US to borrow a record $3 trillion in the second quarter to help stabilize the country after being hit by the COVID-19 outbreak, which will be added with the previously borrowed amount of $477 billion in the first quarter of the year.
The national debt of the United States has grown from $ 1.5 trillion to $24.9 trillion since March 1, 2020, a 6.4% increase in the debt. The total amount of $744 billion is being experienced due to budget deficit through the first six months of the financial year.
The United States to help its citizens
The loan was approved after several efforts done by the Congress to resuscitate the country’s economy as it was brought to a standstill amid the coronavirus pandemic. The previous allotments of funds have totaled to $2 trillion and as US to borrow a record $3 trillion, which would be used to help 30 million unemployed citizens of the United States. This amount will be given to thousands of other people in the country who are struggling to keep their businesses afloat during the coronavirus pandemic.
The United States Treasury Department is also backstopping several of their money lending programs to help give $2.2 trillion more to help millions of households and businesses during the difficult times amid coronavirus outbreak as US to borrow a record $3 trillion in an attempt to help the general population residing inside the country.
As US to borrow a record $3 trillion, this huge amount will also cover the tax revenue, which has been delayed until the month of June, along with an increase in the expected Treasury cash balance at the end of June. As the interest rates in the United States have dropped historically low due to the coronavirus pandemic, it is very cheap for the government of the country to loan money.
To give back the loan that is being borrowed by the government of the United States to help the citizens during the difficult times, the ratio of federal debt to GDP will rise to 101% as the national debt will obscure the annual economic output of the country in 2020.