Analysts expect the deficit to decrease in October to $65 billion. Budget revenues increased by 26.7 percent, to $403.43 billion, compared to $318.5 billion in October of last year.
Expenditures rose by 15.7 percent, from $406.37 billion the previous year, to $469.99 billion, while interest paid on the national debt nearly doubled, jumping to $88.9 billion from $47.6 billion last October.
The previous fiscal year, which ended at the end of last September, ended the US budget with a deficit of $1.7 trillion, which represents an increase of 23 percent compared to the previous year. Last year, the deficit reached 6.3 percent of GDP.
In fiscal year 2020, a record deficit of $3.1 trillion was recorded. The last time the US budget closed with a surplus was in the fiscal year 2001. According to analysts, the deficit this year may exceed its counterpart in 2020, with a deficit ranging between 6 and 7% of GDP.
In reference to this, major credit rating agencies issue their warnings one after another, and the increase in bond yields is also partly a result of the deteriorating financial situation. The ratio of national debt to GDP exceeds 100%.