U.S. Posts $129-B January Deficit Due To Calendar Shifts, Higher Outlays

The U.S. federal government recorded a $129 billion budget deficit in January, a sharp increase from the unusually low $22 billion deficit in January 2024.

The latest budget results—the final ones reflecting the fiscal management of former President Joe Biden’s administration—showed that January receipts grew 8% year-over-year, increasing by $36 billion to $513 billion.

The rise was driven by benefit payment calendar shifts and higher spending on Social Security, Medicare, interest payments, and other costs, the U.S. Treasury reported, according to the Associated Press (AP).

The latest budget results—the final ones reflecting the fiscal management of former President Joe Biden’s administration—showed that January receipts grew 8% year-over-year, increasing by $36 billion to $513 billion.

Meanwhile, January outlays surged by 29% or $143 billion, reaching $642 billion.

Excluding the $87 billion in February benefits paid out early at the end of January, the adjusted deficit increase for the month would have been $21 billion instead of the reported $107 billion, according to the Treasury.

A Treasury official also noted that there are currently no plans to include details on Elon Musk’s unofficial “Department of Government Efficiency” initiative—which aims to cut federal spending—in the Monthly Treasury Statement, as reported by the Japan Times.