US budget deficit reached 1.7 trillion dollars in fiscal year 2023

The US Department of the Treasury released its budget balance report for September and the 2023 fiscal year. Accordingly, in the last month of the 2023 fiscal year, which began on October 1, 2022, and ended on September 30, 2023, the federal government's budget deficit was calculated at 171 billion dollars. The federal government had recorded a budget deficit of 430 billion dollars in the same month last year. Thus, the budget deficit decreased by 60 percent in September compared to the same month of the previous year. While the government's revenues decreased by 4.2 percent in September compared to the same month last year to 467.5 billion dollars, its expenditures also fell by 30.4 percent to 638.5 billion dollars.

INTEREST COSTS OF FEDERAL DEBT INCREASED

The total budget deficit of the US federal government for the entire 2023 fiscal year was 1.7 trillion dollars. The country's budget deficit was recorded at 1.4 trillion dollars in fiscal year 2022. Thus, the budget deficit increased by 23 percent in fiscal year 2023 compared to the previous year. The increase in the budget deficit was driven by lower revenues due to lower income tax collections and the rise in interest costs on federal debt due to higher interest rates.

While the federal government's revenues in fiscal year 2023 decreased by 9.3 percent compared to the previous year to 4.4 trillion dollars, its expenditures fell by 2.2 percent in the same period to 6.1 trillion dollars.

WE ARE COMMITTED TO ADDRESSING CHALLENGES

US Treasury Secretary Janet Yellen, in her statement on the matter, noted that the country's economy has maintained its resilience despite global headwinds, stating that expectations that the US would enter a recession in 2023 did not materialize.

Noting that the administration of US President Joe Biden continues to focus on guiding the country's economy toward a transition to "healthy and sustainable growth," Yellen stated, "As we do so, the President and I are also committed to addressing the challenges to our long-term fiscal outlook."

News Source: 12punto