The US Treasury Department reported on Thursday that the federal government incurred a deficit of $129 billion in December, marking a 52% increase of $44 billion from the previous year.
This surge was attributed to a rise in expenses coupled with a decline in revenues compared to December 2022 levels, which were inflated due to the deferral of tax payments amid the pandemic.
In December, expenditures reached a record high of $559 billion, representing a 3% increase, driven in part by elevated Social Security costs and interest on the public debt revenues for the month decreased by 6% to $429 billion.
For the initial three months of fiscal 2024, commencing on October 1, the federal deficit reached $510 billion. This marked a 21% increase of $89 billion compared to the corresponding period last year. A Treasury Department official noted that both expenditures and revenues for this period reached record highs. Expenditures surged by 12% to $1.618 trillion, while revenues saw an 8% increase to $1.108 trillion.
In December, the cost of public debt interest rose to $119 billion, indicating an 11% increase, equivalent to $12 billion, compared to December 2022. This escalation was attributed to higher debt levels and an increase in the weighted average interest rate, which reached 3.11%, surpassing the rate from a year ago by three-quarters of a point.
