U.S. budget deficit widens to $314 billion in November
The U.S. federal budget deficit widened to $314 billion in November, up from $249 billion in the same month last year, the Treasury Department said Tuesday.Economists surveyed by the Wall Street Journal had expected the deficit to increase to $290 billion.
For the first two months of the fiscal year, the deficit widened to $381 billion, up from $336 billion in the same period last year.
In November, government receipts rose, but spending increased at a faster pace, the department said.
Receipts were up $23 billion to $275 billion from a year ago, while outlays rose $88 billion to $589 billion.
Interest on the federal debt was $66.3 billion higher over the first two months of the fiscal year than in the same period a year earlier. The Federal Reserve’s rapid increase in interest rates is leading to higher interest payments.
Net interest costs hit $659 billion in the last fiscal year, having nearly doubled in three years.
Economists are worried about the high levels of the deficit, especially given the relatively healthy economy.
The deficit for all of fiscal year 2023, which ended on Sept. 30, was $1.7 trillion. Experts project the size of the deficit to remain close to $2 trillion per year for the next decade, if no legislative changes are enacted.
