US estimated fiscal deficit to hit post-WWII highest

The US fiscal deficit hit post-World War II highest to reach 3.13 trillion US dollars in the fiscal year 2020, which ended on September 30, according to the US Congressional Budget Office estimate on Thursday.

The office estimated that the deficit came near 15.2 percent of the GDP, or three times of the deficit of the fiscal year 2019, CNN reported.

The CNN report said US national debt is estimated to top its gross domestic product (GDP) in the fiscal year 2020, hitting the highest level since 1946.

The debt is estimated to reach around 102 percent of the GDP, nearest to the 106.1 percent recorded in 1946, said the report.

The US Department of Treasury will release final figures for the fiscal year 2020 later this month.

The size of US national debt has been expanding in recent years, increasing more quickly this year due to the fallout of the COVID-19 pandemic.

Some analysts pointed out that the huge national debt has left the US faced with a fiscal crisis. Should the impact of COVID-19 continue, subsidies and other benefits for many Americans are feared to be reduced.

(Source: Reuters)            

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