Deficit rises to record levels
The US budget deficit during fiscal year 2026 increased by $217 billion, reaching $1.99 trillion, according to data from the US Department of the Treasury. This rise is attributed to unprecedented increases in government spending, particularly public debt servicing costs, as well as the repercussions of the US administration's refund of customs duties.
Spending inflation and revenue decline
Reuters reported that the deficit recorded during the fiscal year ending on September 30 exceeded the $1.78 trillion deficit of fiscal year 2025, making it the largest since 2021 and the third largest in US history. Government revenues reached a record level of $5.40 trillion, an increase of three percent, while expenses rose to $7.40 trillion, an increase of six percent.
Public debt burden and customs duties
Public debt servicing costs reached a record $1.36 trillion, an increase of $144 billion, or 12 percent compared to the previous fiscal year, as total US debt exceeded $40 trillion. Additionally, the refund of $145 billion in customs duties contributed to a decline in net revenue, following a US Supreme Court ruling that annulled a large portion of the tariffs imposed by President Donald Trump.
Financial performance indicators
The US Department of the Treasury estimated the deficit-to-GDP ratio at approximately 6.2 percent in fiscal year 2026, compared to an actual rate of 5.8 percent in the previous fiscal year. In September, the budget recorded a deficit of $27 billion, compared to a surplus of $198 billion in the same month last year.
Source: Syrian Arab News Agency (SANA)
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