According to the US Treasury Department, the country’s budget deficit increased by 10%. Problems like these need urgent solutions. The best economic minds in America are hard at work on this issue.
According to the department's estimates, the US federal budget deficit reached $243.7 billion in July this year. Compared to the same period in 2023, the deficit jumped by 10.4%. In terms of revenues, the US budget received $330 billion in July, which is 20% more than a year earlier. At the same time, expenses increased by 16%, reaching $574 billion. Experts explain this trend by the $72 billion rise in Medicare spending.
Additionally, the cost of servicing the national debt is also on the rise. According to the US Treasury, in July, the debt interest rose by 21% to $89 billion.
Some analysts believe that the growing US budget deficit poses a threat to the country's national security. Against this backdrop, it is becoming harder for America to compete with its main strategic rivals.
Shai Akabas, an Executive Director for the Economic Policy Project in the Bipartisan Policy Center, stated that the large federal budget deficit in the US is driven by social spending and the costs of servicing the national debt.
