US posts $711bn deficit in Q1 of fiscal 2025

January 15, 2025 (MLN): The U.S. government posted an $87 billion budget deficit in December, partly reduced by a shift of benefit payments into November.

However, it capped a record $711bn deficit for the first three months of the 2025 fiscal year, according to the U.S. Treasury Department.

The Treasury, releasing its final budget report before President-elect Donald Trump takes office next week, stated that the $711bn October-December deficit was $201bn, or 39% higher, than the $510bn deficit in the same period a year earlier.

This increase was due to sharp growth in outlays and a slight decline in revenues, as Reuters reported.

For December, the $87bn deficit was reduced by $51bn by the calendar benefit shift, and compared to a $129bn deficit in December 2023.

Receipts for the month were up 6% to $454bn, while outlays as reported were down 3% to $541bn.

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