U.S. Federal Budget Deficit Surges to Record $711 Billion in Q1 2025, Up 39% with $87 Billion December Shortfall

Jan 14, 2025, 09:04 PM

The U.S. federal budget deficit widened to a record $711 billion in the first three months of fiscal year 2025, marking a 39% increase from the $510 billion deficit recorded in the same period of the previous year. The December deficit alone was reported at $87 billion, a 33% decrease from the $129 billion deficit in December 2023. This surge in the deficit was driven by a combination of factors including rising financing costs, increased government spending, and declining tax receipts. The national debt has now surpassed $36 trillion, with interest on the debt totaling $308.4 billion in fiscal 2025, a 7% increase from the previous year. The government's outlays for the first quarter were 11% higher than a year ago, while receipts fell by 2%. The fiscal year 2025 is projected to see financing costs exceed $1.2 trillion, surpassing the previous year's record.