The budget deficit of the U.S. federal government rose by 8% compared to the previous year, reaching $1.8 trillion in the 2024 fiscal year. The U.S. Treasury Department released the budget balance report for September and the 2024 fiscal year, revealing that in the last month of the 2024 fiscal year, starting on October 1, 2023, and ending on September 30, 2024, the federal government had a surplus of $64 billion. This was a significant improvement compared to the $171 billion deficit seen in the same month of the previous year. Revenues for the government increased by 13% to $528 billion in September compared to the same month last year, while expenditures decreased by 27% to $463 billion.

Throughout the 2024 fiscal year, the total budget deficit for the U.S. federal government amounted to $1.8 trillion. This marked an 8% increase from the $1.7 trillion deficit recorded in the 2023 fiscal year. Therefore, the budget deficit in the 2024 fiscal year was the third largest in the country’s history. The U.S. faced a record $3.1 trillion deficit in the 2020 fiscal year due to the impact of COVID-19, followed by a $2.8 trillion deficit in the 2021 fiscal year. Revenues for the federal government in the 2024 fiscal year increased by 11% to $4.9 trillion compared to the previous year, while expenditures rose by 10% to $6.8 trillion during the same period. The rise in interest costs, social security, and defense expenditures contributed to the increase in the budget deficit.

U.S. Treasury Secretary Janet Yellen stated that the U.S. economy continued to demonstrate its strength and resilience in 2024, with inflation decreasing and the labor market remaining strong. Yellen commented that the Gross Domestic Product (GDP) growth supported by strong household consumption and investments remained healthy as inflation returned to normal levels.