U.S. Deficit Surges Amid Political Debate over Fiscal Responsibility

The Congressional Budget Office forecasts a federal deficit of $1.834 trillion for 2024, noting rising debt interest and increased spending on Social Security and Medicare. Amidst this fiscal strain, political figures like Kamala Harris and Donald Trump debate over responsible deficit management strategies. The CBO highlights significant deficits into the next decade.

The Congressional Budget Office (CBO) revealed on Tuesday that the U.S. federal deficit for fiscal 2024 is projected at $1.834 trillion, marking the highest post-COVID deficit. This increase is attributed to soaring debt interest costs and rising expenditures for Social Security, Medicare, and health insurance tax credits.

The forecast comes ahead of the U.S. Treasury Department's upcoming year-end budget report, showing an 11% rise from the $1.7 trillion deficit in fiscal 2023, though a shade lower than CBO's June estimate of $1.9 trillion. These swelling deficits have turned into a focal point of political debate.

Vice President Kamala Harris positions herself as fiscally prudent against Republican Donald Trump, committing to offset new spending with tax hikes. Meanwhile, fiscal experts estimate Trump's plans would introduce an additional $7.5 trillion in debt, compared to $3.5 trillion from Harris' proposals, prompting heated discussions over economic stewardship.

(With inputs from agencies.)