US net liabilities top $1 trillion

The American government’s net liabilities swelled more than $1 trillion (£639.8 billion) as commitments on government debt and federal benefits rose, a US treasury report showed yesterday.

The Financial Report of the United States, which applies corporate-style accrual accounting methods to Washington, showed the government’s liabilities exceeded assets by $14.8tn, compared with a $13.5tn gap a year earlier. “This report provides another sobering picture of our long-term fiscal challenges,” US treasury secretary Timothy Geithner said.