The United States closed its 2024 fiscal year with a record $1.8 trillion budget deficit, surpassing the previous year’s $1.7 trillion shortfall. The Congressional Budget Office (CBO) revealed these figures, showing a revenue of $4.9 trillion and $6.75 trillion in expenses, largely due to increased spending on interest and social programs.
Despite low unemployment and strong economic growth, the deficit raises concerns about the country’s financial health. The leading presidential candidates, Kamala Harris and Donald Trump, lack clear solutions to address the deficit, with their proposed economic plans potentially worsening the situation over the next decade.
Analyzed by the Committee for a Responsible Federal Budget (CRFB), Trump’s plans, including import tariffs and tax cuts, could add $7.5 trillion to the deficit, while Harris’s proposals, such as tax hikes and social program expansions, might increase it by $3.5 trillion.
Economists and investors have expressed concerns about the candidates’ fiscal policies, framing the election as a choice between the “lesser of two evils.” As the November election approaches, the next president faces the challenge of addressing the deficit while promoting economic growth and supporting social programs for long-term financial stability.