2023 Deficit Surges to $1.7 Trillion, Deepening US Fiscal Woes
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The 2023 federal budget deficit surged 23% to $1.7 trillion, leaving the US in its deepest fiscal hole outside of the Covid era.
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The deficit increase effectively doubled from $1 trillion in 2022 to $2 trillion in 2023 when accounting for student loan forgiveness.
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More than 40% of the increase was due to lower tax revenues.
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The government paid $659 billion in interest payments, nearly double the amount from two years ago.
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With a potential government shutdown next month, worsening finances could increase tensions in federal funding negotiations.
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Despite deficits, the US could still afford $100 billion in proposed emergency spending given declining inflation and low unemployment.
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