U.S. budget deficit rose sharply in November

The U.S. budget deficit increased by $57 billion in November, that is, by 30% compared to the previous year, amounting to $249 billion. This became a record high due to lower revenues, as well as a sharp increase in interest costs on the public debt and spending on education and healthcare.

In November, receipts fell to $252 billion, that is, a decrease by 10% ($29 billion) compared to the previous year. At the same time, outlays increased by 6% ($28 billion) and amounted to $501 billion.

Among the factors of a significant decline in revenues were a 4% decrease in individual withheld tax receipts, an increase in individual tax refunds by 64%, and a 98% drop in earnings of the Fed.

The costs of the federal Medicare health insurance program increased by 18% ($14 billion), and education costs increased by 94% ($11 billion) due to changes and debt forgiveness in student loan programs.

Interest costs on the U.S. public debt increased by 53% ($19 billion). However, as a result of a $17 billion reduction in tax credits, this amount was mostly compensated. In the first two months of fiscal year 2023, interest increased by 87% ($48 billion).