(MENAFN– The Rio Times) The US budget deficit rose to 6.4% of GDP in 2024, up from 6.3% in 2023. This increase occurred despite higher tax revenue that couldn’t cover rising debt costs.
The Treasury Department released this information on a Friday, just before the election featuring Democratic candidate Vice President Kamala Harris against former Republican President Donald Trump.
By September 30, 2024, the deficit reached $1.833 trillion, an 8.0% increase from the previous year, making it the third-largest in US history, surpassed only by the deficits of 2020 and 2021.
The growth in the deficit is largely due to high interest payments on US debt. Treasury Secretary Janet Yellen emphasized focusing on long-term economic growth through investments in infrastructure, manufacturing, and clean energy.
A White House official criticized Congressional Republicans for tax cuts that decreased revenue and increased debt. From October 2023 to September 2024, government revenue rose by 11.0% to $4.919 trillion due to better employment and wages.
However, government spending also increased by 10% to $6.752 trillion mainly due to debt servicing. As the election nears, these financial figures are expected to stir discussions on economic policy and spending.
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