US Budget Deficit Widens to $840 Billion in First 4 Months of Fiscal Year

According to new Treasury Department data, the U.S. government registered a $840 billion budget deficit in the first four months of fiscal year 2025, up 58 percent from the previous year. In January, the federal government announced a $129 billion shortfall, significantly higher than the $21.9 billion it had logged in the same month last year. The 12-month rolling deficit over the past year is about $2.1 trillion. Last month’s budget gap was higher than the consensus forecast of $88.1 billion, fueled by calendar adjustments in benefit payments. Tax receipts rose nearly 8 percent from a year ago, totaling $513.294 billion. Total outlays climbed about 29 percent year over year, reaching $642 billion. The largest spending items were Medicare ($135 billion), Social Security ($128 billion), and net interest payments ($81 billion)....