US Budget Deficit Jumps to $1.7 Trillion in 2023, IMF Urges Policy Changes to Address Inflation and High Rates

The US budget deficit surged to $1.7 trillion in fiscal year 2023, $300 billion more than in 2022.

The government spent $6.1 trillion but only generated $4.4 trillion in revenue.

The IMF expressed concern over the deteriorating US fiscal situation.

The IMF urged the US to change its spending and tax policies to address inflation and high interest rates.

The IMF said the US fiscal policy should not be procyclical given the inflationary environment.