Congressional Budget Office (CBO) report on sectoral spending for FY2025

U.S. Budget Deficit Hits $1.8 Trillion for FY2024, 6.4% of GDP, CBO Reports

Oct 9, 2024, 01:02 AM

The Congressional Budget Office (CBO) has reported that the U.S. budget deficit for fiscal year 2024 reached $1.8 trillion, a significant increase from previous years. This deficit represents 6.4% of the country's GDP, a level typically associated with periods of economic downturn rather than relative prosperity. The increase in the deficit is attributed to higher government spending, particularly in areas such as interest payments, Social Security, and Medicare. Notably, net interest payments rose by 24% in one year, while tax revenues increased by 11%, including a 26% rise in business tax contributions. Projections indicate that if current policies continue, deficits could approach $4 trillion within the next decade. The current deficit marks the highest level since the COVID-19 pandemic, underscoring ongoing fiscal challenges faced by the Biden administration.