(MENAFN– The Rio Times) The US budget deficit increased to 6.4% of GDP in 2024, up from 6.3% in 2023. This rise happened despite more tax revenue, which couldn’t cover higher debt service costs.
The Treasury Department released these numbers just before the upcoming election, where Democratic candidate VP Kamala Harris will face former Republican President Donald Trump.
By the end of the 2024 fiscal year on September 30th, the deficit reached $1.833 trillion, 8.0% higher than last year, making it the third-largest deficit in US history.
Only the deficits from 2020 and 2021 were larger, primarily due to pandemic-related spending. After a significant decrease in 2022, the deficit began to rise again in 2023.
High interest payments on the national debt contributed to the 2024 deficit growth. Treasury Secretary Janet Yellen emphasized the administration’s focus on long-term economic growth through infrastructure, manufacturing, and clean energy investments.
A White House official criticized Congressional Republicans for tax cuts that cut revenue and increased debt.
From October 2023 to September 2024, government revenue grew by 11.0% to $4.919 trillion, driven by better financial conditions for households due to higher employment and wages. Government spending also rose by 10% to $6.752 trillion, mainly due to increased debt servicing costs.
The growing deficit shows the challenges of balancing economic growth and fiscal responsibility. These numbers will likely spark discussions about economic policy and government spending as the election approaches.
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