Debt climbs to new highs as budget outlook worsens

The first year of the current administration has seen bold moves to overhaul the economy. Tax cuts hit record lows, tariffs surged, and federal spending was trimmed sharply. Yet these shifts largely cancel each other out when it comes to the national budget. A recent forecast from a non‑partisan agency shows that borrowing will rise even more than expected. Compared with earlier estimates, the projected shortfall over nine years has grown from $21. 8 trillion to $23. 1 trillion—a gap of $1. 4 trillion. The agency warns that the debt owed to the public could outpace the country’s yearly economic output. By 2036, debt might reach 120 percent of GDP, surpassing the peak seen after World War II.Such a level could threaten stability in the world’s largest economy. The biggest budget impact comes from sweeping tax cuts that favor high earners while cutting aid for low‑income groups. These reforms are expected to cost about $4. 7 trillion over nine years, according to the forecast. On the other side, new tariffs are projected to bring in roughly $3 trillion during the same period. However, the revenue gained is unlikely to offset the overall debt growth. The combination of deep cuts and new taxes means that, despite short‑term policy changes, the long‑term fiscal picture remains concerning. Economists caution that without a clear plan to reduce borrowing, the nation risks facing a debt crisis.