US Fiscal Deficit Hits Record High Amid Unchecked Spending and Tariff Effects

The U.S. budget deficit has soared to a record $1.147 trillion for the first five months of fiscal 2025. This increase is attributed to rising outlays for debt interest, Social Security, and healthcare, with little effect from initial import tariffs or federal spending cuts under President Trump.

The U.S. budget deficit for the initial five months of fiscal 2025 has reached a historic $1.147 trillion, according to the Treasury Department. This includes a $307 billion deficit in February, marking President Trump's first full month in office, and representing a 4% rise compared to the same period last year.

During October through February, the deficit surpassed the previous record of $1.047 trillion set in the fiscal year 2020-2021, a time characterized by significant COVID-19 relief spending and constrained revenues. The Treasury noted a rise in February's deficit by $11 billion from February 2024 due to a surge in debt interest payments, Social Security, and healthcare benefits, overshadowing revenue growth.

Despite efforts by Trump's administration to slay government expenditure and impose additional tariffs, fiscal results indicated negligible transformations. February's receipts reached a record $296 billion but couldn't match the $603 billion outlays. The Committee for a Responsible Federal Budget highlighted that current fiscal-year borrowing averages $8 billion daily, indicating a persistent challenge in managing national debt.

(With inputs from agencies.)