Soaring U.S. Deficit: Record Highs and Budget Challenges

The U.S. federal government reported a $129 billion budget deficit for January, significantly higher than the previous year's $22 billion. This increase was influenced by schedule changes in benefit payments and swelling expenses in Social Security, Medicare, and interest. Year-to-date, the fiscal 2025 deficit hit a historic $840 billion.

The U.S. Treasury revealed a stark rise in the federal budget deficit for January, reaching $129 billion. This contrasts sharply with the prior year's $22 billion, primarily due to a shift in benefit payment calendars and a rise in Social Security, Medicare, and interest outlays.

While the adjusted increase for January was $21 billion, the cumulative deficit for the first four months of fiscal 2025 surged to a record $840 billion. Treasury officials attribute this spike partly to deferred tax payments from the previous fiscal year.

Receipts grew by 8% to $513 billion in January, but expenses climbed even higher at 29%, amounting to $642 billion. For fiscal 2025 so far, receipts reached $1.596 trillion, with expenditures hitting $2.436 trillion, both record figures for this period.

(With inputs from agencies.)