- By Ajeet Kumar
- Thu, 20 Aug 2026 03:42 PM (IST)
- Source:JND
- US national debt reaches $40 trillion, a record high.
- Trump administration added $1 trillion every five months.
- Debt impacts borrowing costs, wages, and goods prices.
America, the world's richest country, now carries a national debt of around USD 40 trillion-- nearly ten times India's nominal GDP. India's nominal GDP currently stands at approximately USD 3.92-4.15 trillion, making it one of the largest and fastest-growing major economies in the world. According to the International Monetary Fund’s World Economic Outlook database (April 2026), India’s GDP at current prices is projected to reach around USD 5.1 trillion by 2028–29, as stated by Finance Minister Nirmala Sitharaman in a written reply in the Rajya Sabha on 8 August.
What The Daily Jagran analysis suggests
In terms of America, the latest figure, revealed on Wednesday, 19 August, paints a concerning picture of the US economy under the Trump administration. An analysis by The Daily Jagran shows that the current administration has added nearly USD 1 trillion in debt roughly every five to six months. In March 2026, the total stood at USD 39 trillion; in October it was USD 38 trillion; and it has now reached USD 40 trillion. The debt is expected to cross USD 41 trillion by this winter or early next spring.
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Further underscoring the scale of the challenge, the United States has a nominal GDP of approximately USD 32.38 trillion, still the largest in the world, yet its national debt has climbed to USD 40 trillion.
In simple terms, it is earning far less than what it takes to pay the burden of the loan.
Why does the US have a record amount of national debt?
According to AP, the latest debt has taken a dramatic turn after the Trump administration boosted defence costs, social programs like Social Security and Medicare and interest on the burgeoning deficit make up an enormous share of federal spending.
The debt has exploded over several presidential administrations, as the nation’s leaders spend more money than it collects in taxes. In recent memory, the multi-year COVID-19 pandemic shut down much of the US economy, during which the federal government borrowed heavily during President Donald Trump’s first term and under former President Joe Biden to stabilise the economy and support a recovery.
What experts and White House say about record debt
Experts say the exploding debt and the latest record milestone are already affecting Americans’ pocketbooks by raising borrowing costs for things like mortgages and cars, lowering wages from businesses that have less money available to invest, and creating more expensive goods and services.
Kush Desai, a White House spokesman, said the Trump administration “has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America’s debt-to-GDP ratio trending in the right direction.”
“If we want to improve our living standards, today and for the next generation, now is the time for lawmakers to put our nation on a more affordable and sustainable path,” news agency the Associated Press quoted Michael A. Peterson, CEO of the Peter G. Peterson Foundation, a think tank focused on US fiscal challenges, as saying.
(With inputs from PTI via AP)