Newspanel

Stay informed with the latest breaking news, in-depth analysis, and trending stories from around the world—your trusted source for reliable and up-to-date news.

US Fiscal 2024 : Record Debt Interest Matches Deficit, Spending Woes Persist

US Fiscal 2024: Record Debt Interest Matches Deficit, Spending Woes Persist 

It's quite fitting that at a time when the interest on US debt has reached a record $1.1 trillion, the US deficit for the first six months of fiscal 2024 also stands at $1.1 trillion.

According to the latest Treasury Monthly Statement, in March, the US deficit exceeded expectations, hitting $236 billion, which is $40 billion more than anticipated, though still below February's $296 billion.

This was due to $332 billion in government tax receipts, resulting in a total of $4.580 trillion in tax receipts over the last twelve months, showing a 5% decrease compared to the previous year.

This was countered by consistently high monthly outlays, with March seeing $568 billion in spending, the highest monthly total in 2024 so far, leading to a six-month moving average of $542 billion. It's easy to predict that this trend will persist during and after the next recession.

This highlights that the US doesn't suffer from a tax collection issue but rather from excessive spending. Increasing taxes would likely drive more billionaires to tax havens like Dubai.

In the first half of fiscal 2024, the US deficit reached $1.065 trillion, nearly matching last year's $1.1 trillion, the second-highest on record after the 2021 post-COVID deficit. Annualized, the total deficit for fiscal 2024 is expected to reach $2.2 trillion, despite the purported growth of approximately 2.5%. One can only speculate on GDP growth without such wartime or crisis deficits.

Looking ahead, it's daunting to contemplate the magnitude of the US deficit after the next recession or depression.

Meanwhile, total US interest expenses continue to soar, with interest on US debt soon becoming the largest government outlay, surpassing even Social Security spending by the end of 2024, according to BofA's Michael Hartnett, reaching $1.6 trillion. 

Stay Informed

When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.

ECB Holds Rates Amidst Rising Inflation Pressure
Market Reassesses Rate Cut Expectations Amid Infla...

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Tuesday, 19 August 2025