US budget deficit exceeded $1 trillion through March

WASHINGTON — The US budget deficit exceeded $1 trillion in the first six months of the fiscal year, bolstered in part by interest on public debt, according to Treasury Department data released on Wednesday.

But the gap of about $1.1 trillion was 3 percent below the corresponding period last year, according to Treasury figures.

From October to March, receipts rose by 7 percent to a record $2.2 trillion. Outlays rose by 3 percent, remaining above $3 trillion.

In particular, there was a 32 percent rise in gross corporate taxes collected and an increase in individual taxes as well, the Treasury said.

But a key factor adding to spending was interest paid on the public debt, which shot up 36 percent to $522 billion after borrowing costs jumped.

READ: President Biden signs $1.2 trillion US spending bill

Spending on defense programs also picked up, by 6 percent to $410 billion, while spending by the Social Security Administration was up 8 percent to $741 billion.

There was a drop in expenditures in March, partly because there were no major bank failures this year.

Last year, there was a large Federal Deposit Insurance Corporation payment due to the failures of Silicon Valley Bank and Signature Bank, a Treasury official told reporters.

In 2023, the US budget deficit widened to $1.7 trillion, a development that could pile pressure on President Joe Biden as he seeks reelection.

Last year’s deficit expansion came on the back of lower tax revenues while interest rates remained elevated.