US
President
Joe
Biden,
with
Treasury
Secretary
Janet
Yellen,
speaks
during
a
meeting
with
his
cabinet
at
the
White
House
in
Washington,
DC,
on
March
3,
2022.
Jim
Watson
|
AFP
|
Getty
Images
The
U.S.
government
ran
up
another
half
a
trillion
dollars
in
red
ink
in
the
first
quarter
of
its
fiscal
year,
the
Treasury
Department
reported
Thursday.
For
the
period
from
October
2023
through
December
2023,
the
budget
deficit
totaled
just
shy
of
$510
billion,
following
a
shortfall
of
$129.4
billion
in
just
December
alone,
which
was
52%
higher
than
a
year
ago.
The
jump
in
the
deficit
pushed
total
government
debt
past
$34
trillion
for
the
first
time.
Compared
to
last
year,
which
saw
a
final
deficit
of
$1.7
trillion,
2024
is
running
even
hotter.
In
the
first
quarter
of
fiscal
2023,
for
example,
the
difference
between
spending
and
receipts
totaled
$421.4
billion.
On
an
unadjusted
basis,
that’s
an
increase
of
$89
billion
between
fiscal
2024
and
last
year.
Adjusted
for
calendar
factors,
the
Treasury
Department
said
the
change
between
the
two
years
is
actually
$97
billion.
December’s
shortfall
was
higher
by
more
than
$34
billion
compared
to
the
previous
year,
driven
by
higher
Social
Security
payments
and
interest
costs.
If
the
current
pace
continues,
2024
would
end
with
a
deficit
of
just
more
than
$2
trillion.
The
deficit
has
continued
to
pile
up
despite
the
Biden
administration’s
assurances
that
the
Inflation
Reduction
Act,
in
addition
to
reducing
prices,
would
shave
“hundreds
of
billions”
off
the
deficit.
While
the
rate
of
inflation
has
come
down,
Labor
Department
data
Thursday
showed
the
consumer
price
index
increased
another
0.3%
in
December,
pushing
the
12-month
rate
up
to
3.4%,
higher
than
the
Wall
Street
consensus
and
above
the
Federal
Reserve’s
2%
goal.
With
interest
rates
elevated
as
the
Fed
fights
inflation,
financing
costs
for
the
government
in
2023
totaled
nearly
$660
billion.
Debt
as
a
percentage
of
gross
domestic
product
rose
to
120%
in
the
third
quarter
of
2023.
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