US Fiscal 2024 Deficit Approaching $1.9 Trillion With One Month Remaining
The U.S. budget deficit for the first 11 months of the 2024 fiscal year has reached $1.897 trillion, with annual interest costs on the public debt surpassing $1 trillion for the first time, according to the Treasury Department. This represents a 24% increase from the previous year, attributed in part to higher Interest rates and the absence of a $319 billion cost reduction from President Joe Biden’s now-defunct student loan forgiveness program. The deficit aligns closely with the Congressional Budget Office’s projection of a $1.9 trillion gap for the entire fiscal year, marking it as one of the largest deficits outside of the COVID-19 era. Factors contributing to the higher deficit include increased costs for Social Security, Medicare, and defense programs. Revenue for the period rose by 11% to $4.391 trillion, while expenditures totaled $6.288 trillion, reflecting a 14% increase. Treasury’s interest costs for the fiscal year to date reached $1.049 trillion, up approximately 30% from the previous year due to higher Interest rates and a larger amount of debt exceeding $35 trillion. In August alone, the deficit stood at $380 billion, driven by a significant increase in outlays compared to the reversal of the student loan program in the same month last year. Receipts in August increased by 8%, reaching $307 billion, while outlays soared by 254% to $687 billion.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.