Official U.S. Department of Commerce or Bureau of Economic Analysis (BEA) reports

U.S. Federal Budget Deficit Reaches $1.8 Trillion for FY2024, 6.4% of GDP: NYT

Oct 8, 2024, 06:55 PM

The U.S. federal budget deficit for fiscal year 2024 has reached $1.8 trillion, according to the Congressional Budget Office (CBO) and reported by the New York Times. This marks a significant increase from the previous year's deficit and is notable given the current economic conditions of relative peace and prosperity. The deficit, which is 6.4% of GDP, is driven by increased government spending, including a 24% rise in net interest payments and higher expenditures on programs for older Americans. The debt servicing cost for FY2024 is approximately 3.27% of GDP, a level not seen since 1992. Despite an 11% increase in tax revenue, including a 26% rise from businesses, the spending surge has led to this substantial deficit. Projections indicate that deficits could approach $4 trillion in the next decade if current policies continue.