Trump Era Budget Deficit Soars Amidst Policy Shifts

The U.S. budget deficit reached $307 billion during Trump’s first month in office, a 4% rise from the previous year. Despite higher receipts, government spending increased significantly. The deficit for the fiscal year’s first five months hit $1.147 trillion, driven by increased outlays in education, social security, and debt interest.

Under President Donald Trump's first full month in office, the U.S. budget deficit swelled to $307 billion, indicating a 4% rise from the previous year. The Treasury Department reported higher growth in receipts; however, spending surged, marking record outlays for February.

The fiscal year-to-date figures revealed a sharp rise, with the deficit climbing to $1.147 trillion, a 38% increase from the previous year. While receipts saw a modest 2% rise, total outlays leaped by 13%, resulting in significant financial strain.

The spike in spending is attributed to increased disbursements on elementary and secondary education, social security adjustments, and rising interest on public debt, overshadowing nascent impacts of new tariffs and government cuts.

(With inputs from agencies.)