US deficit widens to $532bn in first four months of FY2024 as interest costs jump 37 per cent

The U.S. budget deficit reached $532 billion in the first four months of fiscal year 2024, up 16 per cent from the same period a year earlier, according to the U.S. Treasury Department. Interest costs were $357 billion in the four months to January, a 37 per cent jump from 2023. The cost of debt has risen as a result of the Federal Reserve's aggressive interest rate hikes, adding to the burden on the U.S. budget. However, the deficit was smaller in January than a year earlier, largely due to higher revenues. Treasury officials said the increase in revenues reflected, in part, lower spending on an epidemic-era programme last month compared with 2023.