American Fed government posts $314 billion deficit in November

The US government recorded a $314 billion budget deficit in November, which was higher than the expected $301 deficit. The Treasury Department reported $275 billion in receipts and $589 billion in outlays. It compares to a $248 billion deficit in the same month last year.

According to the Treasury Department, the federal budget deficit in the United States increased by 26% in November, the highest level since March. This was due to higher interest rates and other expenditures. Federal revenues increased by 9% to $275 billion, while spending increased by 18% to $589 billion. The increase was accounted for by $25 billion in interest payments on US government debt.

The benchmark overnight interest rate has increased by 5.25 percentage points since March 2022 as a result of the Federal Reserve’s increase in borrowing costs. $122 billion was spent on monthly Social Security benefits, which was the biggest outlay.

From 2.22% in November of last year to 3.10% last month, the weighted average interest rate on the $26 trillion in outstanding Treasury securities increased. The Treasury’s year-to-date deficit for fiscal 2024 grew by 13% to $381 billion, compared to $336 billion in the comparable period a year earlier.