U.S. Faces Surging November Budget Deficit

The U.S. government reported a $367 billion budget deficit for November, marking a 17% increase from the previous year. This rise was influenced by calendar adjustments for benefit payments like Medicare and Social Security, setting record-high receipts and outlays for the month.

The United States government experienced a significant fiscal challenge in November, with the budget deficit climbing to $367 billion. This marked a substantial 17% increase from the previous year, as financial calendar adjustments led to accelerated payments for Medicare and Social Security benefits, totaling an additional $80 billion.

According to the Treasury Department, without these payment shifts, the deficit would have lowered by about 9% from last year, settling at approximately $29 billion. Nevertheless, the official numbers pushed November's deficit to a record high for the month, complemented by unprecedented receipts and outlays.

The deficit for the first two months of the 2025 fiscal year hit a record $624 billion, overshadowing even the COVID-19 era challenges. Calendar-related benefit adjustments and the cessation of tax deferrals following disasters like the California wildfires contributed to these figures. Year-to-date receipts saw a decrease of 7%, totaling $629 billion, while outlays surged by 18% to reach $1.253 trillion.

(With inputs from agencies.)