The U.S. budget deficit approached $2 trillion amid a rapid increase in government spending
Kyiv • UNN
The U.S. budget deficit increased by 12% to reach $1.99 trillion. Interest payments on the debt exceeded $1 trillion for the first time.
The U.S. federal budget deficit for fiscal year 2026 reached $1.99 trillion, increasing by 12% compared with the previous year. The main reasons were rising government spending and record payments on the national debt. Bloomberg reports this, citing data from the U.S. Treasury Department, UNN writes.
Details
In the fiscal year that ended in September, U.S. government spending increased by 6% to $7.4 trillion. At the same time, budget revenues grew by just 3% and amounted to $5.4 trillion. The deficit reached approximately 6% of the country's GDP.
One of the main factors behind the deterioration in the budget situation was the rising cost of servicing the national debt. Net interest payments increased by $81.4 billion and reached a record $1.05 trillion for the first time.
U.S. national debt is approaching historic highs
At the same time, spending on Social Security increased to $1.67 trillion, while spending on the Medicare health insurance program rose to $1.07 trillion. Treasury Secretary Scott Bessent also linked the increase in the deficit to the return of some tariff payments following the Supreme Court's decision on Donald Trump's tariff policy.
This is the fourth consecutive year in which the U.S. budget deficit has amounted to approximately $2 trillion. The Congressional Budget Office forecasts that by 2030, U.S. national debt relative to GDP could exceed the historic peak of 106% recorded after World War II.
IMF Managing Director Kristalina Georgieva warned that economic growth would not be enough to quickly remedy the situation. At the same time, the Trump administration is counting on an economic acceleration driven by the development of artificial intelligence.
Despite the record deficit, Trump is proposing to increase defense spending by nearly $500 billion. In addition, he promised $5,000 payments to Americans if Republicans retain control of both chambers of Congress after the midterm elections.