In pics: US national debt swells to $34 trillion, exceeds combined GDP of several major nations

The US government's gross national debt has topped $34 trillion, a record high that foreshadows the coming political and economic challenges to improve America's balance sheet in the coming years. (Photo credit: AP)

The national debt is the total amount of outstanding borrowing by the US federal government accumulated over the nation’s history. It's the total amount of money that the US government owes to external creditors and domestic lenders. (Photo credit: AFP)

The figure has topped the $34-trillion mark several years sooner than pre-pandemic projections. The Congressional Budget Office's January 2020 projections had gross federal debt eclipsing $34 trillion in fiscal year 2029. (Photo credit: AP)

Just to wrap your head around the huge number, the US debt is now more than the combined GDP of economies like China, Japan, Germany, India and UK. (Photo credit: Reuters)

Since 2013, America's debt has more than doubled and has risen sharply by almost $3 trillion since the government suspended the debt ceiling in June. It did that to avert what would have been a first-ever default with just two days to spare. (Photo credit: AP)

Peter G Peterson Foundation, a US bipartisan group that advocates for fiscal responsibility, found that the American government spends almost $2 billion a day on debt interest payments alone. (Photo credit: Reuters)

Interestingly, it estimated that in the next decade, the US government is projected to allocate more funds to interest payments than it has historically dedicated to the combined expenses of research and development, infrastructure, and education. (Photo credit: AP)

There are many factors behind the sooner-than-expected rise in debt. After the pandemic, the US government borrowed extensively under then President Donald Trump and current President Joe Biden to stabilize the economy and support a recovery. However, a consequent surge in inflation that pushed up interest rates made it more expensive for the government to service its debts. (Photo credit: AP)

The escalating debt stems from a disparity between federal spending and revenues. The Peter G Peterson Foundation identified key factors behind this: The aging baby boomer generation straining programs like Social Security, Medicare and Medicaid; escalating healthcare costs; and insufficient tax revenues to fulfill government commitments. (Photo credit: Agencies)

What's next? The Fiscal Responsibility Act (FRA), which was passed in June 2023, leaves the national debt ceiling uncapped for 2024, postponing discussions on long-term solutions and the nation's debt burden until 2025 - after the next presidential election. Till then, US will have to figure out several urgent fiscal matters. (Photo credit: AFP)