{
  "id": 15080944,
  "title": "US budget deficit balloons to highest in five years",
  "url": "https://urgent.news/2026/10/17/us-budget-deficit-balloons-to-highest-in-five-years",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-17T00:33:06.000Z",
  "source": {
    "name": "RTHK News - Finance",
    "slug": "rthk-news-finance",
    "url": "https://news.rthk.hk/rthk/en/component/k2/1874266-20261017.htm"
  },
  "original_language": "en",
  "account": "The United States budget deficit reached a record high of $1.99 trillion in the fiscal year 2026, according to government data released on Friday. This marked a 12% increase from the previous year and is the highest level since 2021, despite President Donald Trump's promises to reduce public spending and debt. The rise in the deficit was primarily due to the ballooning interest payments on public debt, which soared to a record $1.36 trillion, up by $144 billion from the previous year. This surge in interest costs was fueled by rising bond yields. Meanwhile, revenue from Trump's tariffs, which were expected to bolster the budget, failed to materialize as anticipated. The Supreme Court's decision to strike down his global duties in February led to a wave of refunds, with customs refunds alone totaling $145 billion for the year. Overall, government revenues grew by 3% to $5.40 trillion, while spending surged by 6% to $7.40 trillion. Despite the Republican-controlled Congress attempting to cut spending through measures such as reducing the federal workforce and foreign aid, extending tax cuts, and funding Trump's deportation efforts, they were unable to offset the rise in spending. The latest budget data, released on Friday, indicates that the deficit-to-GDP ratio stands at around 6.2%, up from 5.8% the previous year. This exceeds Treasury Secretary Scott Bessent's earlier target of reducing the deficit to 3% of GDP, along with other objectives like achieving a 3% economic growth rate. The budget figures were released just two weeks before the US midterm elections, where Trump's Republican Party aims to maintain control of Congress. Both parties have proposed measures that could exacerbate the budget shortfall, with Trump pledging $5,000 per American adult if Republicans retain control, a plan estimated to cost over $1 trillion, while Democrats seek to reverse Medicaid cuts and restore health care tax breaks.",
  "summary": "The US budget deficit grew to almost US$2 trillion over the past year, government data showed Friday, reaching its highest level since 2021 despite President Donald Trump's promises to cut public spending and red ink. The deficit, which occurs when government spending exceeds its revenues, rose to US$1.99 trillion in fiscal year 2026, the Treasury Department said. This marked a 12-percent…",
  "key_points": [
    "US budget deficit hit $1.99 trillion in 2026, highest since 2021",
    "Interest payments on debt soared to $1.36 trillion, up $144 billion",
    "Revenue from Trump's tariffs failed to materialize as expected"
  ],
  "editors_take": "Surging interest payments and failed tariff revenues undermine fiscal discipline, signaling that even Republican-led spending cuts cannot counteract the rising costs of servicing the nation's massive public debt.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}