According to comprehensive foreign media reports, data recently released by the US Treasury Department shows that the US federal government's fiscal deficit for fiscal year 2023 is $1.695 trillion, an increase of 23% compared to the previous fiscal year. Analysis indicates that the fiscal year 2023 deficit will exacerbate the already high debt of the United States, and may also exacerbate the financial struggle between President Biden and Republicans, making fiscal negotiations before mid November even more difficult.
According to Reuters, this is the largest deficit since the US $2.78 trillion deficit caused by the COVID-19 in 2021, marking that the US deficit has returned to an expanding state after the first two consecutive years of President Biden's administration. The main reasons for the sharp increase in budget deficit are a decrease in income, an increase in social security and medical insurance expenses, and a historic high in federal debt interest costs.