U.S. Federal Budget Deficit Rises to $1.8 Trillion in 2024, 6.4% of GDP: NYT

Oct 8, 2024, 06:19 PM

The U.S. federal budget deficit for the fiscal year 2024 has risen to $1.8 trillion, according to the Congressional Budget Office (CBO) and reported by the New York Times. This figure represents 6.4% of GDP, a level of deficit rarely seen during periods of relative peace and prosperity. The government spent $6.1 trillion in 2023, with debt servicing costs amounting to approximately 3.27% of GDP. Despite a significant increase in tax revenue, including a 26% rise from businesses, the deficit remains high due to increased spending and a 24% rise in net interest payments. The last time debt servicing costs exceeded 3% was in 1992, and the current deficit/GDP ratio is unprecedented with the unemployment rate around 4%.