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US Budget Deficit Exceeds $1 Trillion Through March
By AFP - Agence France Presse
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The US budget deficit exceeded $1 trillion in the first six months of the fiscal year, bolstered in part by interest on public debt, according to Treasury Department data released Wednesday.
But the gap of around $1.1 trillion was three percent below the corresponding period last year, according to Treasury figures.
From October to March, receipts rose by seven percent to a record $2.2 trillion. Outlays rose by three percent, remaining above $3 trillion.
In particular, there was a 32 percent rise in gross corporate taxes collected and an increase in individual taxes as well, the Treasury said.
But a key factor adding to spending was interest paid on the public debt, which shot up 36 percent to $522 billion after borrowing costs jumped.
Spending on defense programs also picked up, by six percent to $410 billion, while spending by the Social Security Administration was up eight percent to $741 billion.
There was a drop in expenditures for the month of March, in part because there were no major bank failures this year.
Last year, there was a large Federal Deposit Insurance Corporation payment due to the failures of Silicon Valley Bank and Signature Bank, a Treasury official told reporters.
In 2023, the US budget deficit widened to $1.7 trillion, a development that could pile pressure on President Joe Biden as he seeks reelection.
Last year's deficit expansion came on the back of lower tax revenues while interest rates remained elevated.
