US budget deficit of nearly 1,700 billion USD, up 23%

The US Treasury Department announced on October 20 that the budget deficit for fiscal year 2023 (ending at the end of September) was $1,695 billion, an increase of $320 billion (23%) compared to the previous fiscal year, Reuters reported.

US Treasury Building

If the Supreme Court does not block President Joe Biden's student loan forgiveness plan, the budget deficit could increase by another $321 billion.

Falling revenue while spending on social security, health insurance and federal debt interest rose to record highs contributed to the deficit, Reuters reported.

Meanwhile, Biden administration officials said the deficit was due to a sharp decline in federal revenues, after a sharp increase due to the rapid rebound from the Covid-19 pandemic. Federal revenues in fiscal year 2023 are $4.439 trillion, down 9.3% from fiscal year 2022, mainly due to a $456 billion drop in personal income tax revenues.

Federal Reserve profits also fell $106 billion as interest payments to banks rose.

Spending in fiscal 2023 is down $137 billion, or 2 percent, from the previous fiscal year to $6.134 trillion. This would have been lower if not for big increases in retirement and health care spending and interest payments. The federal debt is more than $33 trillion, and the U.S. paid a record $879 billion in interest in fiscal 2023, up 23 percent.

Lacking US aid, Ukraine worries about not being able to pay civil servants and teachers

In 2020, when the Covid-19 pandemic broke out globally, the US budget deficit peaked at $3,130 billion. In the following two years, the deficit gradually decreased but increased again in 2023.

The deficit in fiscal year 2023 is 6.3% of gross domestic product (GDP). The Congressional Budget Office warns that based on current tax and spending laws, the US budget deficit will approach Covid-19 levels by the end of the 2020s, possibly reaching $2.13 trillion by 2030 as interest, health care and retirement costs rise.

Source link: https://thanhnien.vn/my-tham-hut-ngan-sach-gan-1700-ti-usd-tang-23-185231021080426299.htm