The US government has reported a significant increase in its budget deficit for May, reaching over $316 billion and taking the year-to-date total to $1.36 trillion. This represents an 14% rise from last year’s tally, with interest on the country’s massive debt totaling $92 billion.
The surge in financing costs is attributed to rising debt levels, which have exceeded $36.2 trillion. The Treasury Department has warned that debt financing is expected to reach $1.2 trillion for the fiscal year, with total interest expenses outpacing all other outlays except for Medicare and Social Security.
Despite tax revenue increases of 15% in May and a 6% rise from last year, expenditure growth has also been significant. Tariff collections have helped offset some of the shortfall, however, with gross customs duties reaching $23 billion in May and totaling $86 billion for the year.
The yield on US government debt remains steady at around 4.4%, despite concerns raised by Wall Street leaders about the country’s mounting debt burden. The current deficit is running at over 6% of the country’s GDP, a level rarely seen in peacetime economies.
Source: https://www.cnbc.com/2025/06/11/us-budget-deficit-hit-316-billion-in-may-with-annual-shortfall-up-14percent-from-a-year-ago.html