Washington (AP)-The American budget deficit is in the first half of the 2025 financial year to more than $ 1.3 trillion, the second highest deficit of the treasury department, which was released on Thursday.
The deficit from October to March includes the administration of President Joe Biden and President Donald Trump. The previous high in the four decades of the record guard was $ 1.7 trillion in the first half of the 2021 financial year when the government fought the Covid 19 pandemic.
An official of the Ministry of Finance, who spoke about the condition of the anonymity for the preview of the data, said that the increased expenses are partially due to a mixture of expenses, including living costs for the payment of social security, higher medicar and medicaid costs, increased disaster relief for spending on emergency management anniversary and Ministry of Defense.
The extensive deficit that occurs in the expenditure exceeds the collected amount of money, since the Trump government has commissioned a plan to reduce waste and expenditure in the federal government by Elon Musk’s Department of Government Efficiency, also known as DOGE.
It also comes when the Republicans closely approved their budget framework on Thursday, which increases tax reductions of 4.5 trillion dollars and is aiming for at least 1.5 trillion dollars of cuts for federal programs and services.
Doge has planned to dismiss a vast part of the 2.4 million members of the Federal Civil Studies of eliminating entire agencies, including the educational department, and reducing other state services.
The data from the recent finance department show a deficit of 1.307 trillion dollars from October to March, the first six months of the 2025 financial year. In the first three months of 2025, the expenditure is more than $ 139 billion compared to the previous year.
In the Oval Office on Thursday, Musk said that Muscap would achieve a saving of 150 billion US dollars in the next financial year by reducing waste and fraud, which he described as “very common”. This is much lower than its earlier goal of shortening 1 trillion US dollar -a number that he used in a FOX News interview last month.
Maya MacGuineas, President of the impartial committee for a responsible federal budget, said on Thursday: “The numbers are undeniable. We collect the debt at an alarming pace, and it is unlikely that it will soon end. In fact, the legislator with trillion does not seem to admit and expenditure of increases.”
“We have to correct the not sustainable course and concentrate on fixing our nation’s finances before it is too late,” said MacGuineas.
The tensions remain at the Republican conference on the scope of the proposed tax and expenditure cuts. Some want more tax cuts than in the blueprint, while other steeper spending cuts want.
Finance Minister Scott Bessent has often spoke about the need to separate the expenses.
He said to Bloomberg Television at the beginning of this month that the nation was thrown closer to the statutory debt on the so-called X-Datum as soon as it stood in early summer. “We will go to the warning route at some point in May or June,” said Bessent.
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Associated Press Reporter Lisa Mascaro, Kevin Freking and Chris Megerian contributed to this report.
