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US budget deficit surges to record $711 billion

Wednesday, 15 January 2025 2:25 AM [ Last Update: Wednesday, 15 January 2025 2:26 AM ]

The US Treasury Department

The latest data released by the US Treasury Department indicate that the country’s budget deficit has widened to a new record in the October to December period.

According to Treasury Department data released Tuesday, the deficit hit $711 billion in the first three months of the fiscal year.

The growth of the government’s spending on the backdrop of slipping tax revenue was cited for the deficit, which showed a 39 percent increase from $510 billion compared to the same period a year ago.

Increased government spending on defense programs, including higher operations and maintenance costs, was among the major factors causing the deficit.

Treasury spending also rose by $33 billion, driven by higher interest on the public debt.

Homeland Security spending also picked up much of it after hurricanes in late 2024.

The new report came as President-elect Donald Trump prepares to take office, promising to cut federal spending.

This comes as the colossal wildfires in Los Angeles, which started last week, have caused more destruction than a nuclear impact, according to Trump.

He warned that the real number of fatalities in the affected areas is likely to surpass the current death toll.

LA wildfires: Trump says there’s ‘literally greater damage than nuclear weapon’

Trump says wildfires in Los Angeles have caused more destruction than a nuclear impact, anticipating a rising death toll.

Wildfires were fueled by hurricane-force winds carrying desert air. Since then, at least 24 people have lost their lives, according to the Los Angeles County Medical Examiner.

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