US budget deficit widens to $1.8 trillion, third highest on record

 (AP Photo/File)

WASHINGTON – The United States on Friday reported a budget deficit of $1.8 trillion for the past year, widening from 2023’s level on greater spending, including for interest on the public debt.

The overall deficit expanded by $138 billion for the fiscal year, said the Treasury Department. The nation’s debt remains a key concern for voters ahead of November’s presidential election.

This year marks the third highest US deficit, behind 2021 and 2020, according to the Treasury.

There was a near 30 percent rise in spending on interest on the public debt, largely due to higher interest rates, it said.

The rise in receipts for the latest fiscal year was mainly due to increases in the amount of individual and corporate income tax collected, among other areas.

In announcing the latest budget results, Treasury Secretary Janet Yellen stressed that the US economy remained resilient in 2024.

The Treasury added that the 2024 deficit was $76 billion lower than an estimate published in March.

As a percentage of GDP, the deficit was 6.4 percent, up from 6.2 percent in the fiscal year of 2023.