The federal government reported receipts amounting to $1.1 trillion in the first quarter of fiscal year 2024 and outlays amounting to $1.6 trillion, resulting in a budget deficit total of $509 billion.
The federal budget deficit for the first three months of FY2024 is roughly 21 percent higher than the deficit for the same period in FY2023, the Congressional Budget Office said in its December budget review, which was issued Tuesday.
Receipts for Q1 FY2024 are 8 percent higher than the receipts for Q1 FY2023. The CBO attributed a large portion of the increase to the postponement of some tax deadlines for taxpayers in federally-declared disaster areas. Taxes that would otherwise have been paid in FY2023 were moved to FY2024.
Outlays for Q1 FY2024 are 12 percent higher compared to the same period in FY2023. The CBO pointed to two major contributing factors. First, due to a significant increase in interest rates, net interest on the public debt hit $221 billion, an increase of about $73 billion. Second, due to the need to facilitate the resolution of bank failures in FY2023, outlays for the Federal Deposit Insurance Corporation reached $59 billion, an increase of about $62 billion.