U.S. Treasury Reports $87 Billion December Deficit Amid Fiscal Challenges

The U.S. government recorded an $87 billion budget deficit in December, influenced by a calendar shift. This contributes to a $711 billion deficit for the first quarter of fiscal 2025, driven by increased outlays and slightly decreasing revenues, according to the U.S. Treasury Department's latest report.

The U.S. government reported an $87 billion budget deficit for December, partly due to a scheduling change in benefit payments, according to the Treasury Department. This adjusted figure caps a historic $711 billion deficit for the initial three months of the 2025 fiscal year.

In its final budget evaluation before President-elect Donald Trump assumes office, the Treasury disclosed that the October-December 2025 deficit rose by 39% compared to the previous year, escalating to $711 billion from $510 billion. The increase is attributed to rising expenditures and a slight dip in revenue.

For December, the deficit reduced by $51 billion due to the benefit calendar shift, compared to a $129 billion deficit in December 2023. Monthly receipts increased by 6% to $454 billion, while recorded expenditures fell by 3% to $541 billion.

(With inputs from agencies.)