Dealing with the debt stock

According to the International Monetary Fund's (IMF's) projections, the general government debt in the US is likely to increase from 122.2 per cent of GDP in 2023 to 136.2 per cent by 2028

Rajesh Kumar
US Dollar, dollar

Photo: Bloomberg

The US debt ceiling dialogue between President Joe Biden and House Speaker Kevin McCarthy remained inconclusive, and an agreement looked elusive at the time of writing of this column. Treasury Secretary Janet Yellen has warned that the US government will be unable to pay its bills from June 1. Although the debt ceiling is a self-imposed restriction on how much the US government can borrow — the ceiling currently is about $31.4 trillion — the possibility of missing the deadline to increase the limit could inflict serious economic costs, not only for the US but also the world. The US economy is anyway slowing and uncertainty over the government’s ability to spend, or a significant reduction in spending over the medium term as a compromise to lift the ceiling, will affect output.
Although chances are low, the possibility of an outright debt default by the US government can lead to unimaginable consequences. The US government bonds are viewed as t
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Also Read

US debt ceiling: Why the government of the USA may go bankrupt soon?

Sweeping spending cuts for America: Republicans clear debt-ceiling hike

Markets drop on US debt ceiling concerns, benchmark indices shed 6% each

TMS Ep435: Electronics export, Twitter CEO, realty stocks, US debt ceiling

Crypto wrap: High fluctuation in market due to US debt ceiling crisis

Long road to fiscal consolidation

Three points for the Budget

What next for central banks?

The real cost of freebies

When $640 billion is not enough

The UK a tax haven?

Regulators will drive the ESG agenda

The unsung hero

Need to go beyond GDP

The challenge of AI

First Published: May 24 2023 | 10:00 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to