The US budget deficit exceeds one trillion dollars as of March
The US budget deficit exceeded one trillion dollars in the first six months of the fiscal year, partly paid for by higher interest on public debt, according to Treasury Department data issued Wednesday.
But the gap of about $1.1 trillion is three percent less than the same period last year, according to the same source.
From October to March, revenues rose 7% to a record $2.2 trillion.
Expenditures rose by 3%, remaining above $3 trillion.
The Treasury Department specifically cited a 32% increase in total corporate tax revenues, and an increase in personal tax revenues as well.
But the main factor that led to increased spending was the interest paid on public debt, which rose by 36% to $522 billion after borrowing costs rose.
Spending on defense programs also rose 6% to $410 billion, while Social Security Administration spending rose 8% to $741 billion.
A decrease in expenditures was recorded for the month of March, partly due to the lack of major bank failures this year.
A Treasury Department official explained to reporters that the Federal Deposit Insurance Corporation paid large sums of money last year due to the bankruptcy of Silicon Valley and Signature banks.
In 2023, the US budget deficit expanded to $1.7 trillion, a development that may increase pressure on President Joe Biden in his bid to win a second presidential term.
The deficit expansion last year came against the backdrop of falling tax revenues while interest rates remained high.
