Federal deficit rose to $1.7 trillion in fiscal 2023
FILE - The Department of the Treasury's seal outside the Treasury Department building in Washington on May 4, 2021. The U.S. on Thursday, June 15, 2023, imposed sanctions on a North Korean husband and wife living in Beijing accused of helping to procure equipment for ballistic missiles that ended up in the hands of North Korean and Iranian customers. (AP Photo/Patrick Semansky, File)
The federal budget deficit rose to $1.7 trillion in fiscal 2023, according to data released Friday by the Treasury Department.
The gulf between how much money the federal government spent and made in revenue rose by $320 billion between fiscal 2023 — which ended September 30 — and the previous fiscal year.
The fiscal 2023 budget deficit was equal to 6.3 percent of U.S. gross domestic product (GDP), up from 5.4 percent in fiscal 2022.
Biden administration officials attributed to spike in the deficit to a steep drop in federal revenue, which rose sharply during rapid economic rebound from the COVID-19 pandemic. Federal receipts dropped by 9.3 percent from fiscal 2022, almost entirely due to a $456 billion decline in individual income taxes.
The government has also been gradually rolling out billions of dollars in funding for green energy, infrastucutre and other Biden administration initatives that officials say has boosted the economy through choppy waters.
“The U.S. economy remains resilient despite global headwinds. Previous expectations that the
U.S. would fall into recession over the course of 2023 have not borne out,” Treasury Secretary Janet Yellen said in a statement.
“The Biden Administration continues to focus on navigating our economy’s transition to healthy and sustainable growth. As we do, the President and I are also committed to addressing challenges to our long-term fiscal outlook.”