MNI BRIEF: US Deficit $1.8T In 2024, 3rd Largest In History

MNI (WASHINGTON) - The United States saw a USD1.833 trillion federal budget deficit in 2024, according to Treasury Department data Friday rounding out the fiscal year, at 6.4% of gross domestic product, up from 6.2% in 2023. It is the third highest deficit in history and it’s been 23 years since tax revenue exceeded spending.

In all, the government collected a record USD4.9 trillion in revenue and spent USD6.75 trillion, putting the deficit at USD1.83 trillion for the year that ended September 30, according to the Treasury Department, up from USD1.70 trillion last year. The U.S. budget shortfall in 2024 was fueled by Social Security, Medicare and interest costs. In the month of September alone there was a surplus of USD64 billion. 

Gross interest on the public debt increased 29% from last year to a record USD1.13 trillion and net interest costs increased 34% to a record USD882 billion. Net interest as a percentage of GDP was 3.06%, the highest since 1996. The weighted average interest rate of public debt outstanding increased from one year ago 35 basis points to 3.32% from 2.97%.

Both Kamala Harris and Donald Trump are campaigning on expensive programs. CBO director, Phillip Swagel, told MNI recently America has fiscal headroom in the near-term but spending is on an unsustainable track over the long-term. (See: MNI INTERVIEW: CBO's Swagel Sees Fiscal Headroom In Near Term)