Waste of the Day: 2024 Deficit Among Largest Ever

Topline: The federal government had a $1.8 trillion budget deficit in fiscal year 2024, according to new estimates published by the Congressional Budget Office.

Largest deficit since coronavirus

It’s the largest one-year deficit the government has ever reported besides 2020 and 2021, when spending soared due to the pandemic.

Key facts: The government brought in $4.9 trillion of revenue in fiscal year 2024, $479 billion more than the previous year. More than half of the increase came from higher income tax payments: partially because of rising wages, and partially because some cities hit by extreme weather were allowed to pay their 2023 taxes late.

But expenses increased from $6.1 trillion in FY 23 to $6.8 trillion in FY 24. 

Almost half of the increased spending came from President Biden’s initiative to cancel student loan debt. Interest rates on the $36 trillion national debt also increased significantly. Social Security and Medicare spending increased by $185 billion to reflect higher cost-of-living and medical expenses.

Fiscal year 2025 began on Oct. 1, but Congress has yet to approve a new federal budget.

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Not since Clinton have we had a surplus

Background: The federal government recorded a total deficit of $7.7 trillion from fiscal years 2021 to 2024, encompassing nearly all of Biden’s time in office.

The previous record was $5.6 trillion under Donald Trump during the same length of time.

Both presidents far exceeded the $2.2 trillion deficit reported during Barack Obama’s second term in 2013 through 2016. Obama was criticized at the time for ballooning the national debt; now, the $440 billion deficit he posted in 2015 seems like wishful thinking.

There has not been a budget surplus in any year since FY 2001 under then-President Bill Clinton.

Summary: Neither presidential candidate has committed to balancing the U.S. budget and cutting deficit spending, but there is arguably no more important issue facing the country.

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This article was originally published by RCI and made available via RealClearWire.