US Budget Gap Widened During Year on Rate Rise, Revenue Drop
- Income tax receipts ease following prior year’s capital gains
- Interest payments increase as Fed hikes borrowing costs
The US Capitol in Washington, DC.
Photographer: Drew Angerer/Getty ImagesThis article is for subscribers only.
The US government’s budget deficit widened in 2023 as lower income-tax receipts dragged down revenue while rising interest rates added to spending.
The shortfall for the fiscal year that ended Sept. 30 was $1.7 trillion, equivalent to 6.3% of gross domestic product, according to US Treasury data released Friday. That’s the third-largest on record and compares with $1.38 trillion in the prior 12 months, or 5.4% of GDP.