The U.S. Treasury is under "immense pressure"! The budget deficit in November reached USD 366.8 billion, a year-on-year increase of 17%
In November, the U.S. budget deficit surged to $366.8 billion, an increase of 17% year-on-year. The pace of deficit expansion for the fiscal year 2025 has significantly accelerated, with the total deficit for the first two months being 64% higher than the same period last year. November revenue was $301.8 billion, and expenditures were $668.5 billion, leading to a U.S. debt of $36.1 trillion. Despite the Federal Reserve having cut interest rates twice, interest payments remain a significant component of the deficit, with an expected $1.2 trillion in debt interest payments for this fiscal year
According to the Zhitong Finance APP, the U.S. Treasury reported on Wednesday that the U.S. budget deficit surged in November, causing the deficit expansion for the fiscal year 2025 (from October 1, 2024, to September 30, 2025) to accelerate much faster than a year ago, when the deficit reached $1.8 trillion. On an unadjusted basis, the total U.S. deficit in November was $366.8 billion, 17% higher than in November 2023, and the total deficit for the first two months of this fiscal year was over 64% higher than the same period last year.
Specifically, total revenue in November reached $301.8 billion, an increase of about $27 billion compared to the same period last year. Total expenditures amounted to $668.5 billion, nearly $80 billion higher than the same period last year.
As of the end of November, the increase in the deficit has caused U.S. debt to reach $36.1 trillion.
The adjusted deficit for November was $286 billion, bringing the total deficit for the year to $544 billion, a 19% increase.
Despite the Federal Reserve having cut interest rates twice since September, totaling a 0.75 percentage point reduction, interest expenses remain a significant component of the U.S. deficit. Net interest expenses in November were $79 billion, and have reached $160 billion for this fiscal year, exceeding all other expenditures except for Social Security, Medicare, defense, and healthcare.
The U.S. Treasury expects to pay $1.2 trillion in debt interest this fiscal year