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The US budget deficit surged to $257 billion in October, nearly quadrupling compared to the previous year, the Treasury Department said on Wednesday, primarily due to one-off factors such as deferred tax payments from natural disasters in California. This significant shortfall at the beginning of the new fiscal year leaves a gaping hole in the national budget, which will become President-elect Donald Trump’s problem in January.
The 287% surge from the $67 billion deficit recorded in October 2022 was further influenced by calendar adjustments, which nearly cut the reported deficit in half. Excluding these adjustments, the deficit would have stood at approximately $47 billion—still a notable 22% increase compared to the previous year.
Federal revenues took a sharp hit, dropping 19% to $327 billion, while government spending surged by 24%, reaching an eye-popping $584 billion.
Fiscal year 2024 concluded with the Biden administration recording a $1.83 trillion deficit, the largest outside the COVID-19 period, driven by increasing spending on Social Security and Medicare. Amid these significant fiscal challenges, a minor reduction in public debt service costs offered a modest but notable glimmer of financial relief.
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