US deficit tops US$700 billion to hit record in October to December
THE US budget deficit widened to a new record in the October to December period, according to Treasury Department data released on Tuesday, as spending grew while tax revenue slipped.
The expansion took the deficit to US$711 billion in the first three months of the government’s fiscal year.
This was a 39 per cent increase from US$510 billion in the same period a year ago, the department added.
In particular, spending rose by 11 per cent to a fresh record as well, while revenues crept down, said the Treasury.
Outlays reached US$1.8 trillion for the three-month period, a Treasury official told reporters.
Among categories, spending on Medicare and Medicaid rose, as did that on defence programmes - on higher operations and maintenance costs.
Treasury spending also picked up by US$33 billion, driven by higher interest on the public debt.
The cost of servicing the country’s debt has risen in recent times, on the back of higher interest rates.
Among other areas, Homeland Security spending rose too, much of it in the wake of hurricanes in late 2024.
The latest budget figures come as President-elect Donald Trump, who is due to take office Monday, has vowed to slash federal spending. AFP
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