U.S. Budget Deficit Rises Sharply
(MENAFN) The United States' federal budget shortfall expanded by 19.4% in July compared to the same month a year prior, amounting to $291 billion, based on figures released Tuesday by the Treasury Department.
This rise occurred even as tariff income jumped by $8 billion.
For comparison, the government reported a budget gap of $243.7 billion in July of the previous year.
Market expectations had pointed to a smaller budget deficit, projected at $206.7 billion for July.
Total government income rose by 2.5% year-over-year for the month, hitting $338.5 billion.
However, spending grew at a faster pace of 9.7%, reaching a total of $629.6 billion.
Tariff income alone experienced a dramatic increase, surging roughly 273% from the same month last year to $28.4 billion.
This aligns with U.S. President Donald Trump's ongoing trade policy centered on tariffs.
Over the first ten months of fiscal year 2025, the cumulative federal budget deficit expanded by 7.4% compared to the same period a year earlier, totaling $1.6 trillion.
This compares to a $1.5 trillion deficit recorded in the previous fiscal cycle.
During this ten-month span, revenue rose 6.4% to reach $4.4 trillion, while government outlays climbed 6.7%, amounting to nearly $5.9 trillion.
Tariff revenue in the same period stood at $136 billion, marking a more than 116% year-over-year increase.
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