US budget deficit has surged to $1.8 trillion, marking the third-largest shortfall in the nation’s history
The United States has announced a substantial increase in its budget deficit, which has surged to $1.8 trillion over the past fiscal year, marking the third largest deficit recorded in the nation's history.
The United States Treasury Department announced on Friday that the fiscal year, concluding on September 30, 2024, witnessed a widening of the overall budget deficit by $138 billion.
The Treasury Department has reported that the expansion of the budget deficit is primarily due to an approximate 30% increase in expenditure on interest payments for the public debt. This rise is significantly influenced by elevated interest rates.
The report further highlighted that the deficit was partially attributed to a reversal exceeding $330 billion in expenses from the previous year, following the Supreme Court’s nullification of President Joe Biden’s student loan forgiveness initiative.
A White House representative attributed the growing budget deficit to Congressional Republicans, citing tax cuts that resulted in decreased revenue and subsequently elevated the national debt.
Furthermore, increased military expenditures and a surge in Social Security costs have exacerbated the already dire situation.
In the face of ongoing challenges, Treasury Secretary Janet Yellen asserted that the United States economy not only maintained its robustness but also demonstrated growth in 2024. She attributed this economic resilience to the effective policies implemented by the Biden-Harris administration.
She further asserted that the national debt could have escalated to $4.8 trillion had the Biden administration not intervened to save $3 trillion.
The United States budget deficit for this year has reached the third highest level in history, trailing only the fiscal figures recorded in 2021 and 2020, as reported by the Treasury Department.
