The US Treasury Department revealed that there is a budget deficit, recording $1.8 trillion during the year 2024, an increase of more than 8% over the previous year due to large spending, including interest on the public debt.
“The overall deficit widened by $138 billion for the fiscal year and the public debt remains a major concern for voters ahead of the November presidential election,” the department said.
This year represents the third-highest deficit recorded by the United States after 2021 and 2020, according to the Treasury Department.
“There was a 30 percent increase in spending on interest on the public debt, largely due to higher interest rates, and the increase in revenues in the last fiscal year was mainly due to an increase in tax collections,” she added. In her latest budget announcement, Treasury Secretary Janet Yellen asserted that “the U.S. economy remained resilient in 2024,” noting that the 2024 deficit was about $76 billion lower than the estimate published in March.
The deficit-to-GDP ratio was 6.4%, up from 6.2% in fiscal 2023. Individual income and corporate taxes, while the Congressional Budget Office projects the deficit will continue to rise to $2.8 trillion by 2034.
