National debt keeps growing, but not fully accounted for

The federal government’s financial condition worsened by $4.7 trillion in the past year, according to a new report released to coincide with Tax Day.

The annual Financial State of the Union report from Truth in Accounting, a nonprofit government finance watchdog, pointed out that according to the most recent audited financial report of the U.S. government, the U.S.’s true debt has climbed to $158.6 trillion, burdening each federal taxpayer with $974,000. Much of this debt can be traced to obligations that the government has committed to (such as $67.1 trillion in Social Security and $51.6 trillion in Medicare) but that it hasn’t properly accounted for on its balance sheet.

“Our country’s financial condition continues to spiral out of control, and taxpayers are left holding the bag,” said TIA CEO Sheila Weinberg in a statement Tuesday. “On a day when Americans are asked to be transparent and accurate with their finances, their government fails to do the same.”

Despite the enormous size of its commitments to Social Security and Medicare, the U.S. Treasury Department only reported $241 billion of them on the official balance sheet because, according to government documents, recipients aren’t legally entitled to benefits beyond the current month, allowing future payments to be reduced or eliminated by law.

The report’s release comes amid efforts by the Elon Musk-led Department of Government Efficiency to slash the size of the federal government, virtually eliminating entire agencies while threatening cutbacks in Social Security, Medicare and Medicaid offices and personnel to aid seniors.

The report warned that due to inaccurate and nontransparent budgeting practices, Congress and the American people lack the information needed to make informed decisions about taxes, spending, and long-term policy. Weinberg is advocating for full accrual budgeting and accounting, which would include the true cost and projected growth of government programs. “This kind of transparency would be the first step in regaining control of our nation’s finances,” she said.

The Financial State of the Union report gives the federal government an ‘F’ grade for its fiscal health and asks Congress to adopt honest accounting standards to provide long-term financial sustainability. Truth in Accounting is also encouraging citizens to sign a petition asking Congress to mandate that the Federal Accounting Standards Advisory Board adopt the best practices of full accrual accounting in reporting Social Security and Medicare.