US federal government budget deficit reaches highest level in five years
The US budget deficit for the 2026 fiscal year increased by 12 percent to reach $1.99 trillion, marking the highest level since the pandemic era.
According to data released by the US Department of the Treasury, the federal government's budget deficit recorded a significant increase in the 2026 fiscal year, settling at a five-year high.
Annual Increase in Budget Deficit
The US federal government's budget deficit for the 2026 fiscal year showed a 12 percent increase compared to the previous year.
As a result of this increase, the budget deficit reached a total of $1.99 trillion, hitting its highest level in the last five years.
September Budget Balance
In the final month of the fiscal year, which began on October 1, 2025, and ended on September 30, 2026, the federal government ran a deficit of $27 billion.
In the same period of the previous year, the federal government had managed to record a budget surplus of $198 billion.
Revenue and Expenditure Balance
In September, government revenues increased by 3 percent on an annual basis to $558 billion.
During the same period, public expenditures reached $585 billion after recording a 69 percent increase.
General Annual Table
The budget deficit, which was $1.78 trillion in the previous fiscal year, peaked following the levels seen in 2021 when the Covid-19 pandemic was influential.
In the 2026 fiscal year, total revenues rose by 3 percent to $5.4 trillion, and public expenditures rose by 6 percent to $7.4 trillion.
Interest Payments and Taxes
While the federal government's gross interest payments rose to $1.36 trillion in the 2026 fiscal year, net interest expenses exceeded $1 trillion.
During the period in question, net customs duty revenues declined to stand at $173.2 billion.