Experts warn of possible US debt default in September

The United States could face the risk of defaulting on its debt as early as September due to low tax revenues. Photo: AFP

For example, analysts note that the United States could exceed its debt limit as early as September if Congress does not decide to expand it.

At the same time, experts had previously predicted that the United States would exceed this mark only in October-November 2019.

The reason for this is that tax revenue is too low, increasing only 3% compared to last year instead of the previously estimated 6%.

Also, it should be noted that the US House of Representatives is in recess on July 26, but the issue of increasing the debt limit has not yet been raised.

As the head of the BPC's economic policy department Shai Akabas said, the government should not go on vacation without making a corresponding decision on the state debt. According to him, otherwise Washington risks not ensuring the fulfillment of its credit obligations.

In early 2019, the US national debt exceeded $22 trillion for the first time in history. In addition, in the 2018 fiscal year, the US budget deficit increased by 17% and reached $779 billion. It is expected that by 2020 this figure will exceed $1 trillion. At the same time, the national debt is likely to continue its upward trend, as government spending is completely uncontrolled.