The Canada Brief

Economy · 18 d ago

US Treasury Department building, Washington

MeanieHyaena · CC BY 4.0 · Wikimedia Commons

US budget deficit rises to US$1.99 trillion, the largest in five years

Fiscal 2025

US$1.78 trillion

Fiscal 2026

US$1.99 trillion

The deficit grew by US$217 billion in the fiscal year that ended Sep 30, the first full year of Donald Trump's second term, according to Treasury Department figures. It is the third-largest annual deficit ever.

Spent servicing US debt

1.36 US$ trillion

Spending on interest reached a record US$1.36 trillion, up 12 per cent, as total US debt passed US$40 trillion.

A US Supreme Court ruling struck down a large share of Trump's tariffs, triggering US$145 billion in refunds this year. Net tariff income fell 11 per cent, to about US$173 billion.