The U.S. budget deficit increased significantly in November, accelerating the pace for fiscal 2025 compared to the previous year when the deficit exceeded $1.8 trillion, according to a report from the Treasury Department on Wednesday.
In November, the deficit reached $366.8 billion, marking a 17% rise from November 2023 and pushing the total for the first two months of the fiscal year more than 64% higher than the same period last year on an unadjusted basis.
Despite an increase in receipts to $301.8 billion, approximately $27 billion more than the previous November, outlays amounted to $668.5 billion, an increase of nearly $80 billion from a year ago.
The rise in the deficit led to a national debt of $36.1 trillion by the end of the month.
Adjusting for certain factors, the deficit stood at $286 billion, totaling $544 billion year-to-date, reflecting a 19% increase.
Despite two rate cuts by the Fed since September totaling three-quarters of a percentage point, interest expenses remain a significant contributor to the deficit. Net interest expenses reached $79 billion for the month and have reached $160 billion for the fiscal year, surpassing all other outlays except for Social Security, Medicare, defense, and health care.
The Treasury Department anticipates paying a total of $1.2 trillion this year in interest on debt.
