U.S. budget deficit reaches $1.8 trillion in 2024, third highest on record

The U.S. budget deficit reached $1.8 trillion in fiscal 2024, marking an 8% increase from the previous year and the third highest deficit on record, according to the Treasury Department. Despite record revenues of $4.9 trillion, government spending of $6.75 trillion led to the shortfall. Interest expenses also rose, surpassing $1 trillion for the first time, driven by higher interest rates. Government debt increased to $35.7 trillion, with the deficit now exceeding 6% of the economy, significantly above the historical average. The Congressional Budget Office projects further increases in both deficits and debt in the coming years.