2023 Deficit Surges to $1.7 Trillion, Deepening US Fiscal Woes

The 2023 federal budget deficit surged 23% to $1.7 trillion, leaving the US in its deepest fiscal hole outside of the Covid era.

The deficit increase effectively doubled from $1 trillion in 2022 to $2 trillion in 2023 when accounting for student loan forgiveness.

More than 40% of the increase was due to lower tax revenues.

The government paid $659 billion in interest payments, nearly double the amount from two years ago.

With a potential government shutdown next month, worsening finances could increase tensions in federal funding negotiations.

Despite deficits, the US could still afford $100 billion in proposed emergency spending given declining inflation and low unemployment.