The US Treasury Department said yesterday, Wednesday that the budget deficit increased by 65% (equivalent to 430 billion dollars) in the first six months of the fiscal year compared to the previous year, as it rose from 668 billion dollars to more than 1.1 trillion dollars.
The ministry added that revenues decreased by 3% in the year-to-date period, while expenses increased by 13%.
The amounts collected in personal income taxes were lower than in the same period in the previous year, while spending on Social Security increased.
Spending on national defense also increased, along with higher expenditures for Medicare and Medicaid.
Other expenses this year include $29 billion under the FDIC’s Deposit Insurance Fund program linked to Silicon Valley bank SVB and Signature Bank, Treasury officials told reporters Wednesday.
After the collapse of the two banks last March, the US authorities intervened to ensure that depositors would get their money, after concluding that their bankruptcy would pose a serious risk due to an infection that could lead to the collapse of other banks.
The collapse of the two banks was the sector’s biggest loss since the 2008 financial crisis.
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