U.S. ends fiscal year with a $1.7 trillion deficit

Shafaq News/ The U.S. Treasury Department has reported that the federal government concluded its fiscal year in September with a deficit of approximately $1.7 trillion. There had been speculation that the deficit could exceed $2 trillion, but the final figure stands at $1.695 trillion, reflecting a 23.2% increase compared to the previous fiscal year.

The significant deficit was coupled with a $457 billion drop in revenues, and while expenditures decreased by $137 billion, the total spending for the year amounted to $6.134 trillion. The budget deficit further contributes to the already substantial U.S. national debt, which reached $33.6 trillion in the preceding week.

U.S. Treasury Secretary Janet Yellen emphasized the commitment of President Joe Biden's administration to address long-term financial challenges. She outlined measures to reduce the budget deficit over the coming decade.

Yellen noted the resilience of the American economy despite global challenges, refuting earlier predictions that the U.S. might enter a recession in 2023. These budget developments come in the same week that President Biden requested Congress to allocate $105 billion for "national security priorities," with a substantial portion, $61 billion, designated for Ukraine