financetom
Economy
financetom
/
Economy
/
US budget deficit tops $1.8 trillion in fiscal 2024, third-largest on record
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US budget deficit tops $1.8 trillion in fiscal 2024, third-largest on record
Oct 18, 2024 1:22 PM

WASHINGTON (Reuters) - The U.S. budget deficit grew to $1.833 trillion for fiscal 2024, the highest outside of the COVID-19 era, as interest on the federal debt topped $1 trillion for the first time and spending grew for the Social Security retirement program, health care and the military, the Treasury Department said on Friday.

The deficit for the year ended Sept. 30 was up 8%, or $138 billion, from the $1.695 trillion recorded in fiscal 2023. It was the third-largest federal deficit in U.S. history, after the COVID-19 relief-driven deficits of $3.132 trillion in fiscal 2020 and $2.772 trillion in fiscal 2021.

The fiscal 2023 deficit had been reduced by the reversal of $330 billion of costs associated with President Joe Biden's student loan program after it was struck down by the U.S. Supreme Court. It would have topped $2 trillion without this anomaly.

The sizable fiscal 2024 budget gap of 6.4% of gross domestic product, up from 6.2% a year earlier, could pose problems for Vice President Kamala Harris' arguments ahead of the Nov. 5 presidential election that she would be a better fiscal steward than Republican opponent Donald Trump.

A fiscal think-tank, the Committee for a Responsible Federal Budget, has estimated that Trump's plans would pile up $7.5 trillion in new debt, more than twice the $3.5 trillion envisaged from Harris' proposals.

U.S. receipts for the 2024 fiscal year hit a record $4.919 trillion, up 11%, or $479 billion, from a year earlier, as individual non-withheld and corporate tax collections grew. Fiscal 2024 outlays rose 10%, or $617 billion, to $6.752 trillion.

The biggest driver of the year's deficit was a 29% increase in interest costs for Treasury debt to $1.133 trillion, topping outlays for the Medicare healthcare program for seniors and defense spending.

But a senior Treasury official said the weighted average interest rate on federal debt interest costs began to decline in September for the first time since January 2022.

For September, the government reported a $64 billion surplus, compared to a $171 billion deficit in September 2023, but the improvement was largely due to calendar adjustments for benefit payments. Without these, there would have been a $16 billion deficit in September 2024.

Reported receipts were a record for September at $528 billion, up 13% from a year earlier, while outlays were $463 billion, down 27% largely due to the calendar adjustments.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US New-Home Sales Expected to Slow in October After September Jump
US New-Home Sales Expected to Slow in October After September Jump
Nov 25, 2024
02:20 PM EST, 11/25/2024 (MT Newswires) -- US new single family home sales are expected to slow to a 725,000 annual rate in October, based on a survey compiled by Bloomberg, after rising by 4.1% to a 737,000 rate in September. Sales would still be well above the 673,000 annual rate reported in October 2023. The data are scheduled to...
How Trump could overhaul US financial regulators if he wins on Nov. 5
How Trump could overhaul US financial regulators if he wins on Nov. 5
Nov 25, 2024
(This Oct. 10 story has been corrected to change circuit court to district court, in paragraph 11.) By Michelle Price WASHINGTON (Reuters) - If Republican former President Donald Trump wins the U.S. election on Nov. 5 he is expected to swiftly overhaul the country's financial regulators, which under Democratic President Joe Biden have pursued a slew of stringent new rules...
November Texas Manufacturing Contraction Improves, Production Falls Below Zero Reading
November Texas Manufacturing Contraction Improves, Production Falls Below Zero Reading
Nov 25, 2024
02:35 PM EST, 11/25/2024 (MT Newswires) -- Texas manufacturing activity improved this month into shallower contraction territory but not as much as expected while the production index turned negative, according to the Federal Reserve Bank of Dallas. The general business activity index edged up to minus 2.7 in November from minus 3 in October, the Dallas Fed's manufacturing outlook survey...
Daily Roundup of Key US Economic Data for Nov. 25
Daily Roundup of Key US Economic Data for Nov. 25
Nov 25, 2024
02:22 PM EST, 11/25/2024 (MT Newswires) -- The Chicago Federal Reserve's National Activity index fell to minus 0.40 in October from minus 0.27 in September, while the three-month moving average declined to minus 0.24 from minus 0.21. The Dallas Federal Reserve's monthly manufacturing reading increased to minus 2.7 in November from minus 3 in October. Other manufacturing data already published...
Copyright 2023-2025 - www.financetom.com All Rights Reserved