WASHINGTON, Oct 19 (Reuters): The US budget deficit grew to $1.833 trillion for fiscal 2024, the highest outside of the COVID era, as interest on the federal debt exceeded $1 trillion for the first time and spending grew for the Social Security retirement program, health care and the military, the Treasury Department said on Friday.
The deficit for the year ended Sept. 30 was up 8 per cent, or $138 billion, from the $1.695 trillion recorded in fiscal 2023. It was the third-largest federal deficit in U.S. history, after the pandemic relief-driven deficits of $3.132 trillion in fiscal 2020 and $2.772 trillion in fiscal 2021.
The fiscal 2023 deficit had been reduced by the reversal of $330 billion of costs associated with President Joe Biden's student loan program after it was struck down by the U.S. Supreme Court. It would have topped $2 trillion without this anomaly.
The sizable fiscal 2024 budget gap of 6.4 per cent of gross domestic product, up from 6.2 per cent a year earlier, could pose problems for Vice President Kamala Harris' arguments ahead of the Nov. 5 presidential election that she would be a better fiscal steward than Republican opponent Donald Trump.
A fiscal think-tank, the Committee for a Responsible Federal Budget, has estimated that Trump's plans would pile up $7.5 trillion in new debt, more than twice the $3.5 trillion envisaged from Harris' proposals.
White House budget director Shalanda Young emphasized the strong growth in the U.S. economy and the Biden administration's investments in clean energy, infrastructure and advanced manufacturing.
"This Administration has done this while maintaining a commitment to fiscal responsibility by ensuring the wealthiest among us and large corporations pay their fair share and cutting wasteful spending on special interests," Young said in a statement, referring to plans by Biden and Harris to raise taxes on these groups.
U.S. receipts for the 2024 fiscal year hit a record $4.919 trillion, up 11 per cent, or $479 billion, from a year earlier, as individual non-withheld and corporate tax collections grew. Fiscal 2024 outlays rose 10 per cent, or $617 billion, to $6.752 trillion.
