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US Budget Deficit Hits $421 Billion, Setting Stage for Debt-Limit Fight

  • Faster inflation drove up outlays on Social Security
  • Interest payments soared 37% in first quarter of fiscal year
Bloomberg business news
US Lawmakers Turn Attention to US Debt Ceiling

The US government’s budget deficit widened by 12% for the first quarter of the fiscal year, presaging what’s set to be an intense political battle over fiscal policy.

The budget gap for October through December reached $421 billion, with the increase from the previous year largely driven by rising expenses linked to higher inflation, a Treasury Department release showed Thursday.