Key Takeaways:
* The US government reports a record budget deficit of $1.8 trillion in fiscal 2024, the largest deficit outside of 2020 and 2021.
* Higher income tax payments contributed to an increase in government revenue to $4.9 trillion.
* Expenses surged from $6.1 trillion to $6.8 trillion due to factors like student loan forgiveness and rising national debt interest rates.
* The total deficit from fiscal years 2021 to 2024 was $7.7 trillion, surpassing previous records from Presidents Obama and Trump.
The US government registered a whopping $1.8 trillion budget deficit in 2024, according to fresh estimates. Shockingly, this is the largest annual deficit ever posted apart from 2020 and 2021, making 2024 a record-breaking year in budget deficit history.
Rise in Revenue, Fall Short of Expenditure
With rising wages and late tax payments in some weather-stricken cities, there was a substantial increase in government revenue compared to the previous year. In 2024, the government amassed $4.9 trillion, $479 billion more than 2023. However, the surge in income wasn’t enough to compensate for the massive spending undertaken during the same period.
In a startling turn, expenses jumped from $6.1 trillion in the fiscal year 2023 to $6.8 trillion in 2024. What gave rise to this leap in expenditure?
Where Did the Money Go?
An undeniable chunk of the surge in spending in 2024 came from President Biden’s initiative to wipe clean student loan debt. The cost of this action took a significant chunk from the government coffers, it appears. Yet, it wasn’t the only cause. The national debt, standing at a staggering $36 trillion, saw a noteworthy rise in interest rates. This further pushed up the numbers on the spending front.
Social security and Medicare expenses increased by an impressive $185 billion reflecting the higher cost of living and medical expenses. With the fiscal year 2025 coming on the horizon on October 1st, the congress has yet to approve a new federal budget. Strange times, indeed.
A Look at the Past Deficits
To offer a historical perspective, the federal government recorded a total deficit of $7.7 trillion from fiscal years 2021 to 2024, almost the entire tenure of President Biden. To put in perspective, the previous record stood at $5.6 trillion under President Trump for the same duration.
Even though President Obama was criticized heavily for his role in expanding national debt, the deficit reported during his second term from 2013 through 2016 was merely $2.2 trillion, a stark contrast from his successors. The last time the US saw a budget surplus was back in the fiscal year 2001 under President Clinton.
A Call for Fiscal Responsibility
Sad truth is, neither past nor current presidential candidates have made attempts to commit to balancing the U.S. budget and reducing deficit spending. Yet, there appears to be no imperative issue the country is confronting more significant than this.
Without a stable fiscal strategy, it is likely that the cycle of debt and deficit will persist. The warning signs are clear: the time for fiscal responsibility is now. Labeled #WasteOfTheDay, this alarming truth is a wake-up call for all American citizens and lawmakers.
A message to each one of us – support truthful journalism by contributing to nonprofit news outlets that uncover such troubling facts that often get overlooked. It’s time we demand transparency and tackle the federal budget deficit problem head-on. For a better tomorrow, start today.