When measured against estimates, the FY23 deficit turned out to be $31 billion lower than the baseline estimate of $1.73 trillion published in the 2024 Budget in March. It is also $26 billion higher than the $1.67 trillion estimated in the Mid-Session Review (MSR), a supplemental budget update published in July. The differences were more pronounced when compared to estimates incorporating the enactment of the president’s proposed policies—$126 billion and $152 billion, respectively, US’ treasury department said in a press release.
A deficit occurs when the federal government’s spending exceeds its revenues. The federal government has spent $1.70 trillion more than it has collected in FY23, resulting in a national deficit.
The US fiscal deficit for the financial year 2023 surged to $1.7 trillion, which equates to 6.3 per cent of the GDP.
This marks an increase from last year’s 5.4 per cent of GDP and is $320 billion higher than the previous year.
The actual deficit was $31 billion lower than March’s 2024 budget estimate but $26 billion higher than July’s Mid-Session Review.
Fibre2Fashion News Desk (DP)
