The deficit is being attributed to a sharp rise in government spending and a significant drop in tax revenues. Treasury officials, meanwhile, blamed the falling revenues on reduced investment gains last year.
The tax revenues during the nine-month period were 11 per cent lower than the same period a year before, while government spending jumped by 10 per cent YoY.
As the federal debt is large as well--estimated at over $32 trillion, financing that is turning expensive due to rising interest rates, according to US media reports.
Interest payments over the last nine months reached $652 billion—25 per cent more than during the same period a year ago.
ALCHEMPro News Desk (DS)
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