U.S. Budget Deficit Shrinks by 32% in March

The U.S. government posted a $161 billion budget deficit for March, a 32% decrease from the previous year due to a calendar shift for benefit payments. Despite an increase in customs duties, the first six months of fiscal 2025 saw a $1.307 trillion deficit, up 23% from last year.

The U.S. government's budget deficit for March stood at $161 billion, marking a significant 32% reduction compared to the same month last year. This decline is attributed to a calendar shift affecting benefit payments while government receipts continued to rise, according to the Treasury Department.

Total net customs duties in March amounted to $8.75 billion, a $2 billion enhancement from a year earlier and the highest since September 2022. The rise is partly linked to tariff increases initiated by President Donald Trump since February, a Treasury official confirmed.

Despite these changes, the Treasury highlighted a $1.307 trillion budget deficit for the first half of fiscal 2025, starting October 1. This represents a 23% increase from the previous year and is the second largest deficit for the first six months of any fiscal year, following fiscal 2021's record $1.706 trillion deficit driven by pandemic-related spending and reduced revenues.

(With inputs from agencies.)