(MENAFN – The Rio Times) The US budget deficit rose to 6.4% of GDP in 2024, up from 6.3% in 2023, despite increased tax revenue that couldn’t cover rising debt costs.
The Treasury Department released these numbers just ahead of the elections, featuring Democratic candidate and Vice President Kamala Harris against former Republican President Donald Trump.
By September 30, 2024, the deficit reached $1.833 trillion, 8.0% higher than last year and the third-largest in US history, surpassed only by the deficits of 2020 and 2021 during the pandemic.
High interest payments on the national debt contributed to the deficit’s rise in 2024. Treasury Secretary Janet Yellen emphasized the administration’s commitment to long-term economic growth through investments in infrastructure, manufacturing, and clean energy.
A White House official criticized Congressional Republicans for tax cuts that reduced revenue and increased debt, as they continue to push for further tax reductions.
From October 2023 to September 2024, government revenue grew by 11.0% to $4.919 trillion, supported by higher employment and wages. Meanwhile, government spending increased by 10% to $6.752 trillion, driven largely by rising debt servicing costs.
This growing deficit presents challenges in achieving economic growth while maintaining fiscal responsibility, which will likely spark debates on economic policy as the election nears.
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