The US budget deficit in 2023 increased by 23% to $1.7 trillion

The United States government has announced a 23% increase in the budget deficit compared to the previous fiscal year, reaching an impressive $1.695 trillion. This news became a subject of discussion among financial experts and analysts.

The Treasury Department reported that this deficit was the largest since the COVID-19 crisis in 2021, when the gap was $2.78 trillion. One of the key reasons for this increase is the high cost of social security and medical care, as well as record high interest costs on the federal debt.

It is worth noting that this data comes in the context of US President Joseph Biden's request to Congress to allocate $100 billion for new foreign aid and security. In particular, this includes $60 billion for Ukraine and $14 billion for Israel, as well as funding for border security in the United States and the Indo-Pacific region.

It is worth noting that the large deficit, which exceeded all previous deficits before the COVID-19 crisis, including those resulting from the Donald Trump tax cuts and the financial crisis, is likely to trigger new fiscal disputes between Biden and Republicans in the House of Representatives.

According to Reuters, in September, the last month of the fiscal year, the deficit fell to $171 billion from $430 billion in September 2022. This may indicate the government's attempts to reduce the growth rate of the budget deficit in the face of financial challenges.