US budget deficit likely to be at its highest in 2020; projected to hit over GHc5 trillion

US budget deficit likely to be at its highest in 2020; projected to hit over GHc5 trillion

- The budget deficit of the United States of America is likely to reach over $1 trillion for the first time since 2012

- Increase in government spending has been identified as the key reason for the increase in the level of deficit

- This however comes in the wake of steady growth in the economy but there are reasons to believe it could reach about $31 trillion in the next decade

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YEN.com.gh has learned that the United States of America (USA)’s deficit for the year 2020 is likely to be over $1 trillion.

This, per reports available, is projected to be the highest since the year 2012, when the country was pursuing stimulus measures to help the nation recover from the Great Recession.

Businessinsider.com reports that such the increase in the deficit is as a result of the US government spending more than it is able to accrue as revenue, despite a steady growth in the economy.

US budget deficit likely to be at its highest in 2020; projected to hit over GHc5 trillion

Source: businessinsider.com
Source: UGC

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According to the nonpartisan Congressional Budget Office on Tuesday, January 28, 2020, the budget deficit is projected to hit $1.02 trillion in the fiscal year that started on October 1, 2019.

It has however been determined that borrowing is likely to continue over the next decade and could hit an unprecedented $31 trillion.

In other news, France has expressed fears about the possibility of the United States of America (USA) reducing its military activities in West Africa.

Of greater concern to France is the likelihood that the USA may cut down support for its (France) military activities in the sub-region. This follows a shift in the list of priorities of the U.S with regard to defence in West Africa.

YEN.com.gh understands that there has been a shift in the focus on counter-terrorism to competition for power.

Per a report by cfr.org, US’s Department of Defense has been mulling over a reduction in its assets in Africa, especially West Africa.

In France’s opinion, this would be a mistake, as there are still trouble spots in the region with regard to terrorism.

Information available shows that there has been an exponential rise in terrorism in countries such as Mali, Burkina Faso, Niger, and Chad.

France’s president, Emmanuel Macron, has intimated that his country would only stay at the request of the government’s in the region.

At a meeting with five francophone heads of states in early January 2020, they reaffirmed their desire for the French to stay.

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