Budget Package Repays $11.1 Billion in Debts and Liabilities in 2019‑20.
Since 2008, America’s national debt has surged nearly 200%, reaching $27 trillion as of October 2020. To gain a better understanding of this ever-growing debt , this infographic takes a closer look at various U.S. budgetary datasets including the 2019 fiscal balance.
But four states are outlawed from taking out debt to begin with, and a dozen more have strict limitations on the debt they can incur. That means you need direct federal grants to states , not just commitments by the Fed to keep interest rates on debt low.
In 2017 a miscalculation of the costs for the state’s Medi-Cal program of $1.9 billion in 2016 led Governor Jerry Brown to project the state of California will face a $1.6 billion budget deficit.
California’s largest public pensions have significant unfunded liabilities. The largest funds at CalPERS and CalSTRS have reported gaps of more than $138.9 billion and $107.3 billion , respectively, between their estimated obligations to retirees and the current value of their assets.
South Dakota has the second-lowest debt in the United States with total liabilities equaling $1.14 billion. States with the Least Debt Massachusetts ($11,043) Connecticut ($10,877) Rhode Island ($8,457) Alaska ($8,068) New Jersey ($7,371) New York ($7,162) Hawaii ($6,835) New Hampshire ($5,644)
On January 8, 1835 , President Andrew Jackson achieves his goal of entirely paying off the United States’ national debt. It was the only time in U.S. history that the national debt stood at zero, and it precipitated one of the worst financial crises in American history.
Tennessee is the top state for fiscal stability. It’s followed by Florida , South Dakota , North Carolina and Utah to round out the top five. Half of the 10 states with the best fiscal stability also rank among the top 10 Best States overall.
Treasury bonds are how the US – and all governments for that matter – borrow hard cash: they issue government securities, which other countries and institutions buy. So, the US national debt is owned mostly in the US – but the $5.4tn foreign-owned debt is owned predominantly by Asian economies .
Foreign investors hold roughly 40% of the US’ debt
|2||China (mainland)||$1.1 trillion|
The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP) as of Q1 2014.
States may wish to borrow in the short term to manage cash flow or to buy time in hopes of additional direct federal aid or faster-than-expected economic growth.
Four Ways the United States Can Pay Off Its Debt . In most discussions about paying off debt , there are two main themes: cutting spending and raising taxes. There are other options that may not enter most conversations but can aid in debt reduction, too.