U.S. Federal Deficit Jumps 52% to $129 Billion in December 2024: Record Outlays and Decreasing Receipts

• In December, the U.S. federal government reported a deficit of $129 billion, reflecting a 52% increase from the prior year, primarily due to higher outlays and lower receipts compared to December 2022.

• December outlays set a record at $559 billion, a 3% increase driven by higher Social Security spending and interest on the public debt. Conversely, receipts for the month decreased by 6% to $429 billion.

• For the first three months of the 2024 fiscal year (starting Oct. 1), the federal deficit reached $510 billion, marking a 21% rise from the corresponding period in the previous year.

• Both year-to-date outlays and receipts established records, with outlays rising by 12% to $1.618 trillion and receipts increasing by 8% to $1.108 trillion.

• Public debt interest costs for December rose to $119 billion, up 11% or $12 billion from December 2022. This increase was attributed to higher debt levels and a higher weighted average interest rate of 3.11%, which was three-quarters of a point higher than the previous year.