U.S. budget deficit hits $1.8 trillion in first 10 months of fiscal 2024

The U.S. federal budget deficit expanded to $1.8 trillion in the first 10 months of the fiscal year, the Treasury Department reported on Wednesday.

Outlays totaled $4.8 trillion, while receipts amounted to $3.0 trillion, resulting in a shortfall that underscores persistent fiscal pressures. The gap widened compared with the same period last year, when the deficit stood at $1.3 trillion through July.

Spending on interest payments on the national debt surged 33% year-over-year to $839 billion, reflecting higher borrowing costs amid elevated interest rates. Defense and social programs also contributed to elevated outlays, while revenue growth remained subdued amid slower economic activity.

The fiscal year ends on Sept. 30, and the deficit is on track to exceed $2 trillion for the fourth consecutive year. Analysts note that without legislative action to curb spending or boost revenue, the imbalance is likely to persist, complicating fiscal policy amid a backdrop of rising debt levels.

The Treasury’s monthly budget statement follows recent warnings from the Congressional Budget Office about the long-term sustainability of U.S. fiscal policy.