Now Reading: US deficit to hit $2.1 trillion as spending outstrips revenue
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US deficit to hit $2.1 trillion as spending outstrips revenue
The US federal deficit is on track to hit $2.1 trillion in fiscal year 2026, the Congressional Budget Office (CBO) has estimated. The figure would be $200 billion higher than the 2025…
The Story in Brief
The US federal deficit is on track to hit $2.1 trillion in fiscal year 2026, the Congressional Budget Office (CBO) has estimated. The figure would be $200 billion higher than the 2025 deficit. Spending rose $308 billion in the first 10 months of the fiscal year, while tax revenue increased by only $139 billion, according to Fox Business.
The biggest cost drivers were interest on the $39 trillion national debt (up $117 billion) and mandatory programs: Social Security (up $70 billion), Medicare (up $66 billion) and Medicaid (up $45 billion). Corporate tax collections fell 23% after provisions in the One Big Beautiful Bill Act. Tariff revenue dropped sharply after the Supreme Court ordered refunds totaling about $100 billion. Maya MacGuineas of the Committee for a Responsible Federal Budget called the borrowing level 'astounding'.
The Indian Opinion
American politicians on both sides point fingers over deficits, but neither party has touched the real drivers: mandatory benefits and interest costs. The nonpartisan CBO data shows Social Security, Medicare, and debt service account for most of the gap. Tax cuts under the One Big Beautiful Bill Act have shrunk corporate collections by 23%. A fair test is whether lawmakers will let the $100 billion in tariff refunds reshape trade policy or quietly blow a bigger hole in the budget. Who will propose cutting a popular entitlement first, and will they get reelected?
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
