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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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