by Bill McBride on 10/04/2005 03:16:00 PM
Tuesday, October 04, 2005
The US Treasury Department reports that the US National Debt increased $553.7 Billion in fiscal 2005 (ends Sept 30, 2005).
The total National Debt is now $7,932,709,661,723.50.
Click on graph for larger image.
The increase in the National Debt was slightly less than the record set in fiscal 2004 of $595.8 Billion in additional debt.
The initial estimates for fiscal 2006 are for a new record of approximately $650 Billion in new debt. On the positive side, tax revenues from the housing boom will help in fiscal '06. On the negative side are the additional expenditures for hurricane recovery.
In addition, if the economy weakens significantly, as the housing market slows, the increase in the debt could be substantially higher.