(MENAFN– The Rio Times) The US budget deficit increased to 6.4% of GDP in 2024, up from 6.3% in 2023. This happened despite more tax revenue that couldn’t cover rising debt costs.
The Treasury Department released these numbers just weeks before the election, where Democratic candidate Vice President Kamala Harris will face former Republican President Donald Trump.
The deficit reached $1.833 trillion by the end of the 2024 fiscal year, marking an 8.0% rise from last year and ranking as the third-largest in US history. Only the deficits from 2020 and 2021 were larger due to pandemic-related spending. After a drop in 2022, the deficit has started to rise again in 2023.
High interest payments on US debt have contributed to the deficit’s growth this year. Treasury Secretary Janet Yellen emphasized the administration’s commitment to long-term economic growth with investments in infrastructure, manufacturing, and clean energy.
A White House official criticized Congressional Republicans for tax cuts that lowered revenue and increased debt, while also pushing for more tax reductions.
From October 2023 to September 2024, government revenue rose by 11.0% to $4.919 trillion, partly due to improved household finances from higher employment and wages. Meanwhile, government spending climbed by 10% to $6.752 trillion, driven mainly by increased debt servicing costs.
This deficit growth highlights the ongoing struggle to balance economic growth with fiscal responsibility, an issue expected to dominate discussions as the election nears.
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