The US budget deficit to exceed $1.8 trillion by the end of 2024
The United States announced that its budget deficit for 2024 exceeded $1.8 trillion, an increase of more than 8% compared to last year, due to large spending, including higher interest on the public debt.
According to the Treasury Department’s statement, the overall deficit increased by $138 billion during the fiscal year, and the public debt remains a major concern as the presidential election approaches in November.
This deficit is the third largest in US history, exceedingly only the deficits recorded in 2020 and 2021, according to the Treasury Department.
The treasury department indicated that there was an increase of about 30% in spending on interest related to the public debt, due to significantly higher interest rates.
Revenues increased during the last fiscal year, mainly due to higher tax collections, and Treasury Secretary Janet Yellen confirmed in her announcement of the budget results that “the American economy remained strong in 2024”.
The Treasury Department explained that the final deficit for 2024 was $76 billion less than the estimates issued last March.
As for the deficit-to-GDP ratio, it rose to 6.4% compared to 6.2% in fiscal year 2023.
The Congressional Budget Office expects the deficit to continue to increase to reach $2.8 trillion by 2034.
