FX.co ★ US Government Budget Gap Narrows in March

In March 2025, the United States government reported a budget deficit of $161 billion, reflecting a 32% decrease from the previous year, primarily because of a shift in the calendar affecting benefit payments, as stated by the Treasury Department. However, despite this monthly decrease, the broader fiscal situation remains troubling. The Treasury has reported a $1.307 trillion deficit for the first half of fiscal year 2025, marking a 23% increase compared to the previous year. This is the second largest deficit recorded for the first six months of any fiscal year, surpassed only by the $1.706 trillion shortfall in fiscal 2021, which was significantly affected by expenditures related to the pandemic. In March, net customs duties amounted to $8.75 billion, the highest figure since September 2022, partly due to tariff hikes introduced during former President Donald Trump’s administration. Nonetheless, the Treasury has indicated that Trump's claim of generating $2 billion per day from tariffs is likely an exaggeration. Overall, even as revenue collection continued to rise, the budget outlook highlights persistent fiscal challenges.