U.S. budget deficit reaches $404 billion
The U.S. Treasury Department released federal budget data for October, the first month of fiscal year 2027.
According to the figures, the budget deficit increased by 42.1% year over year to $404.1 billion, compared with a deficit of $284.3 billion in the same month of the previous year. October's budget shortfall also exceeded market expectations of $318 billion, reaching a record monthly high.
Federal government revenues declined by 8.8% year over year to $368.9 billion in October, while expenditures increased by 12.2% to $773 billion. Meanwhile, the U.S. budget deficit for fiscal year 2026 had risen by 12% from the previous year to $1.99 trillion. This marked the largest annual deficit since fiscal year 2021, when the COVID-19 pandemic significantly affected government finances. Declining revenues and rising public spending highlighted the continued pressure on the U.S. federal budget balance.