U.S. Budget Deficit Reaches USD 711 Billion in First Quarter of Fiscal Year 2025
USA: The U.S. government recorded an USD 87 billion budget deficit in December 2024, reduced by a USD 51 billion shift of benefit payments into November, the U.S. Treasury Department reported. Despite this adjustment, the first quarter of fiscal year 2025 (October-December) ended with a record USD 711 billion deficit, a 39% increase from the USD 510 billion deficit in the same period of fiscal year 2024. The sharp rise was attributed to increased government outlays and slightly reduced revenues. December’s receipts rose 6% to USD 454 billion, while reported outlays fell 3% to USD 541 billion, reflecting the temporary benefit shift.
The deficit growth highlights fiscal challenges as President-elect Donald Trump prepares to take office. Treasury data revealed that higher expenditures and lower revenue streams compared to the previous year drove the USD 711 billion shortfall in the first quarter. The December 2024 deficit of USD 87 billion, though smaller than the USD 129 billion recorded in December 2023, still underscores the growing fiscal gap as the government grapples with spending pressures and revenue fluctuations.
Source: Reuters