U.S. Fiscal Woes: Deficit Hits $1.833 Trillion Amid Rising Interest Costs

The U.S. budget deficit soared to $1.833 trillion for fiscal 2024, the third-largest in history. Rising interest costs and increased spending on Social Security, health care, and military contributed to this spike. A fiscal gap of 6.4% GDP raises election challenges for Kamala Harris against Donald Trump.

The United States faces a soaring budget deficit, reaching $1.833 trillion for fiscal year 2024—the highest recorded outside of the pandemic era. This alarming figure, revealed by the Treasury Department, is attributed to a notable increase in interest on federal debt, which surpassed $1 trillion for the first time.

Amid these fiscal concerns, Vice President Kamala Harris is challenged with proving her financial stewardship capabilities ahead of the looming presidential elections. Her fiscal strategies, juxtaposed with former President Donald Trump's proposals—estimated to incur $7.5 trillion in new debt—could greatly influence electoral outcomes.

White House budget director Shalanda Young underscored economic growth and investments in clean energy and infrastructure, emphasizing the administration's efforts to ensure fiscal responsibility. Despite a 29% hike in interest costs, receipts for fiscal 2024 set a record at $4.919 trillion, with tax collection hikes driving up revenues.

(With inputs from agencies.)