U.S. Budget Deficit Reaches $367 Billion in November

By David Lawder
WASHINGTON (Reuters)
The U.S. government reported a $367 billion budget deficit for November, marking a 17% increase from the previous year. This rise is attributed to calendar adjustments for benefit payments, resulting in $80 billion higher outlays compared to the same month in 2023, as stated by the Treasury Department on Wednesday.

Without the acceleration of payments for Medicare and Social Security programs into November, the deficit would have been approximately $29 billion, or 9% lower than last year.

Health care and pension programs for seniors account for significant government expenditures. Notably, the November deficit is the highest on record for that month. Both receipts and outlays set new records for November; receipts rose 10% to $302 billion, while outlays increased 14% to $669 billion.

Moreover, the deficit for the first two months of the 2025 fiscal year reached $624 billion, up $244 billion or 64% from the same period last year, even surpassing the COVID-19 era deficits. The fiscal year begins on October 1.

These deficits were influenced by calendar-related shifts in benefits and increased receipts during October and November 2023, following the end of tax payment deferrals related to California wildfires and other disasters.

Year-to-date receipts decreased by 7% from the previous year to $629 billion, while outlays rose 18% to $1.253 trillion. The two months’ outlays included a $4 billion (or 30%) rise in Department of Homeland Security spending, mainly due to FEMA expenditures for recent hurricanes.

Despite a $7 billion increase in November, the Treasury's interest costs on public debt remained steady at $169 billion for the first two months of the fiscal year.