On Friday, the U.S. reported a budget deficit of $1.8 trillion for the past year, up from the same period in 2023, due to higher spending, including interest on government debt.
US budget deficit is the third highest ever
The overall deficit increased by $138 billion for the fiscal year, the Treasury Department said. The nation's debt remains a key concern for voters before the November presidential election. According to the Treasury, this year marks the third-highest U.S. deficit, behind 2021 and 2020. Spending on interest on government debt increased nearly 30%, mainly due to higher interest rates. "
US revenue rises on higher tax collections; 2024 deficit $76 billion lower than estimated
The increase in revenue last fiscal year was mainly due to increases in the amount of personal and corporate income tax collected, among other areas. In announcing the latest budget results, Treasury Secretary Janet Yellen noted that the U.S. economy remained resilient in 2024. The Treasury added that the 2024 deficit was USD76 billion lower than the estimate published in March. The deficit was 6.4% of gross domestic product, up from 6.2% in fiscal 2023.
