Deficit Surges
US Budget Deficit Reaches Nearly $2 Trillion, Highest Level Since 2021
The US federal budget deficit grew to $1.99 trillion in fiscal year 2026, a 12-percent increase from the prior year and the highest level since 2021. Record interest payments on public debt reaching $1.36 trillion and $145 billion in tariff refunds following a Supreme Court ruling were among the primary contributors. Government spending rose six percent to $7.40 trillion while revenues grew three percent to $5.40 trillion. The deficit-to-GDP ratio stands at 6.2 percent, above the administration's stated target of three percent. The figures arrive less than three weeks before U.S. midterm elections, with both parties proposing measures that economists say would expand the shortfall further.
2026-10-17 / BalVoi
