The federal government borrowed about $1.2 trillion in the eight-month period ending in May, the Congressional Budget Office (CBO) estimated. in a report on Monday.
The nonpartisan budget evaluator said the figure is $38 billion above the federal budget deficit recorded during the same period in fiscal 2023.
Total expenditures increased 8 percent over the past eight months, reaching $4.5 billion, as the CBO noted a 42 percent increase in net interest expenditures on public debt. The percentage represents an estimated increase of $185 billion compared to the same period in fiscal year 2023; the office pointed to rising interest rates as a major contributor.
Spending on programs such as Social Security, Medicare and Medicaid increased 6% in net value during the same period, totaling an increase of $117 billion, the CBO estimated.
Medicare is predicted to have seen the largest increase, as spending increased by 10%, or $51 billion, largely due to “increased benefit payments to Medicare Advantage plans,” the CBO said. Spending on Social Security benefits increased 8%, or $74 billion, following an increase in the number of beneficiaries and average benefit payments.
At the same time, however, Medicaid spending fell by 2%, or $8 billion, as the CBO said, “states continue to reevaluate the eligibility of enrollees who remained in the program during the coronavirus public health emergency.” .
Other areas that saw increases in spending included defense programs and services for veterans. The CBO estimated that Department of Defense spending increased by 8%, or $39 billion, over the past eight months, while noting that “the largest increase was for military personnel.” Department of Veterans Affairs spending also increased by 14%, or $27 billion, which the office said was “primarily due to increased per-person spending and increased use of healthcare facilities by veterans.”
The Department of Education and the Department of Agriculture’s Food and Nutrition Service were among the agencies and programs that saw notable projected reductions in spending, as the CBO estimated a 20 percent drop in spending in both categories.
Total revenues are also estimated to have increased by 10%, reaching $3.3 billion over the past eight months, as individual income taxes and payroll taxes have also increased. The number represents an increase of US$294 billion compared to the same period in fiscal year 2023.
This story originally appeared on thehill.com read the full story
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