US Deficit Tops $1.1 Trillion For First Six Months Of Fiscal 2024 As Spending Hits 2024 High
It's oddly fitting that in a time when the interest on US debt just hit a record $1.1 trillion, that the US deficit for just the first six months of fiscal 2024 is also $1.1 trillion.
According to the latest Treasury Monthly Statement, in March the US deficit hit $236 billion, some $40 billion more than the $196 billion expected, if below February's $296 billion...
... which was the result of $332 billion in govt tax receipts - translating into $4.580 trillion in LTM tax receipts, and which was down 5% compared to a year ago...
... offset by the now traditional ridiculous monthly outlays, which in March amounted to $568 billion, up from $567 billion in February and the highest monthly spending total in calendar 2024, which translated into a 6 month moving spending average (for smoothing purposes) of $542 billion. Take a wild guess what will happen to the chart below during and after the next recession.
This, incidentally, is a reminder that the US does not have a tax collection problem - it has a spending problem, and no amount of tax changes will fix it; in fact all higher taxes will do is force more billionaires to move to Dubai where they pay zero taxes.
Putting the YTD deficit in context, in the first six months of fiscal 2024, the US deficit hit $1.065 trillion, just shy of the $1.1 trillion reached last year, which was the 2nd highest on record and only the post-covid 2021 was worse. Annualized, we expect total deficit to hit $2.2 trillion in fiscal 2024, a year when the US is supposedly "growing" at a nice, brisk ~2.5% pace. One can only imagine what the GDP growth would be if the US wasn't set to have a wartime/crisis deficit...
... and we can't even imagine what US deficit will be after the next recession/depression.
Meanwhile, as reported previously, total US interest continues to explode, and after surpassing total annual defense spending about a year ago, just the interest on US debt will soon become the single largest government outlay as it surpasses social security by the end of 2024, when according to BofA's Michael Hartnett it hits $1.6 trillion...
... and surpasses Social Security spending as the single largest spending category in the US government.
