U.S. Government Budget Deficit

WASHINGTON (Reuters) – The U.S. government posted an $87 billion budget deficit in December, reduced partly by a shift of benefit payments into November. This capped a record $711 billion deficit for the first three months of the 2025 fiscal year, according to the U.S. Treasury Department on Tuesday.

The Treasury released its final budget report before President-elect Donald Trump takes office next week. The $711 billion deficit for October-December was $201 billion, or 39% higher, than the $510 billion deficit from the same period a year earlier, driven by sharply growing outlays and a slight decline in revenues.

For December, the $87 billion deficit was reduced by $51 billion due to the calendar benefit shift, compared to a $129 billion deficit in December 2023. Monthly receipts rose by 6% to $454 billion, while reported outlays decreased by 3% to $541 billion.