U.S. Budget Deficit Soars to $257 Billion in October

The U.S. budget deficit surged to $257 billion in October 2023, nearly quadrupling compared to the previous year, primarily due to one-off factors such as deferred tax payments from natural disasters in California. This 287% increase from the $67 billion deficit in October 2022 was compounded by calendar adjustments that nearly halved the deficit. Without these adjustments, the deficit would have been approximately $47 billion, a 22% rise from the prior year. Federal receipts fell by 19% to $327 billion, while outlays increased by 24%, totaling $584 billion. The Biden administration recorded a full-year fiscal 2024 deficit of $1.83 trillion, the largest outside the COVID-19 era, as expenditures on Social Security and Medicare rose. However, a decrease in public debt service costs provided a small positive note amidst the overall fiscal challenges.