The deficit increased by $138 billion to $1.8 trillion in fiscal year 2024 and governmental receipts rose by $479 billion to $4.9 trillion, up 10 percent from FY 2023, according to the Department of the Treasury and Office of Management and Budget.
In a joint release published Friday, the organizations said the rise in FY 2024 receipts can be attributed to increases in individual and corporate income taxes and social insurance and retirement receipts.
“The U.S. economy continued to demonstrate its strength and resilience in 2024, with inflation having fallen more than two thirds from its peak while the labor market remains strong. Anchored by strong household consumption and strong business investment, GDP growth has remained healthy even as inflation normalizes,” Treasury Secretary Janet Yellen said.
The FY 2024 deficit was 6.4 percent as a percentage of gross domestic product and was $76 billion lower than the baseline estimate of $1.91 trillion in the 2024 budget published, which was released in March.
Outlays climbed by 10.1 percent, approximately $617 billion, to $6.8 trillion partially due to a Supreme Court decision on certain student loan programs, increases in defense spending and Social Security spending and a rise in Medicare gross outlays.
Federal borrowing from the public hit $28.2 trillion in FY 2024, an increase of $2 trillion from the previous fiscal year.
The two agencies attributed the increase to borrowing needed to fund the deficit and net borrowing associated with other transactions, including net disbursements for federal credit programs and changes in cash balances.
