The overall deficit widened by $138 billion for the fiscal year, the Treasury Department said. The national debt remains a major concern for voters ahead of the November presidential election.
This year marks the third-highest deficit in the U.S. after 2021 and 2020, according to Treasury. There was a nearly 30% increase in interest costs on the national debt, largely due to higher interest rates, the release said. The increase in receipts for the latest fiscal year was mainly due to an increase in the amount of personal and corporate income tax collected, among other areas.
While announcing the latest budget results, Treasury Secretary Janet Yellen stressed that the U.S. economy remained resilient in 2024. Treasury added that the 2024 deficit was $76 billion lower than the estimate released in March. As a percentage of GDP, the deficit was 6.4 percent, up from 6.2 percent in fiscal 2023. | BGNES
