US budget deficit widens to US$1.7tn
The US budget deficit for the past year widened to US$1.7 trillion, government data showed on Friday, in a development that could add pressure on President Joe Biden as he seeks reelection in 2024. The deficit expanded by US$320 billion for the fiscal year ending September 30, following a drop in tax revenues and lower deposits of earnings by the Federal Reserve on the back of higher interest rates. Total government outlays decreased slightly from the previous year, after the Supreme Court cancelled Biden's student loan forgiveness programme, noted a joint statement by the Treasury Department and the Office of Management and Budget. But spending increased in some areas, with a US$134 billion rise in Social Security due to cost-of-living adjustments and a US$162 billion bump in outlays for interest on the public debt. "The deficit remains over US$1 trillion lower than when President Biden took office, thanks in large part to a strong economic recovery," said the joint statement. (AFP)