(001) It's time to act on the ballooning federal debt

As of September 2021, the U.S. federal government had more than $34 trillion in liabilities and less than $5 trillion in assets, according to the federal financial statements for fiscal year 2021.

Expenses related to the COVID-19 pandemic have added to the federal deficit, and rising interest rates make it more difficult to pay off what is owed.

Greg Anton, CPA, CGMA, a BDO partner and former chair of the AICPA Board of Directors, has long been an advocate of federal fiscal responsibility. He joins us to explain the severity of the deficit problem, which has the potential to spiral and create economic conditions unfavorable for businesses, investors and the public at large. Anton also offers his own suggestions for responsible federal budgeting.

TOPICS
• How the federal financial statement works, and the difference between the financial statement and the budget.
• What the federal balance sheet says about the government’s assets and liabilities.
• What rising interest rates may do to the deficit in the coming years.
• What the public can do to advocate for responsible budgeting.

TAKE IT FURTHER
For more information on the challenges to U.S. federal government fiscal sustainability, visit aicpa.org/whatsatstake.

Read about how government finance leaders delivered critical services to the public during the COVID-19 pandemic.

Connect with our guest Greg Anton

Visit our Purpose In Action page at AICPA.org.

Feedback and comments welcomed at [e-mail]

This is a podcast from AICPA & CIMA, together as the Association of International Certified Professional Accountants.