US budget deficit hits $257b in Oct. ’24

The US budget deficit reached $257 billion in October, with total receipts amounting to $327 billion and total outlays hitting $584 billion.

The government collected $168 billion in individual income taxes and $122 billion in social insurance and retirement contributions, while corporate income taxes generated $13 billion. Other receipts included excise taxes ($10 billion), customs duties ($7 billion), miscellaneous taxes ($3 billion), and estate and gift taxes ($3 billion).

On the expenditure side, social security payments accounted for $125 billion, while national defence spending reached $103 billion.

Health-related outlays were $85 billion, and net interest on the national debt totaled $80 billion. Medicare expenditures were $77 billion, and income security programmes cost $45 billion.

Other significant expenses included veterans’ benefits ($31 billion), education ($26 billion), and transportation ($11 billion). Additional smaller costs added up to $257 million.

Outlook for Fiscal Year 2025 Projects Similar Deficit

The US federal budget outlook for fiscal year 2025 projects total receipts of $327 billion and total outlays of $584 billion, leading to a deficit of $257 billion.

The government’s receipts are primarily driven by $168 billion in individual income taxes and $122 billion from social insurance and retirement programs.

On the outlay side, the largest expenditures include $125 billion for Social Security, $45 billion for income security, and $85 billion for health programs. Other significant spending includes $26 billion for education, $103 billion for national defense, and $77 billion for Medicare.

Attribution: U.S. DEPARTMENT OF THE TREASURY – Monthly Treasury Statement

Subediting: M. S. Salama