The U.S. budget deficit for fiscal year 2026 is nearly US$2 trillion, a year-on-year increase of 12%

China News Service, Washington, October 16 (Reporter Sha Hanting) Data released by the U.S. Department of the Treasury on the 16th local time showed that the total U.S. federal budget deficit in fiscal year 2026 (October 1, 2025 to September 30, 2026) will be close to US$2 trillion.

Data show that the U.S. federal budget deficit totaled US$1.99 trillion in fiscal year 2026, an increase of 12% from the US$1.78 trillion figure in fiscal year 2025. This is the third-highest budget deficit year in U.S. history, behind only fiscal years 2020 and 2021. Among them, the total fiscal revenue of the United States in fiscal year 2026 is US$5.4 trillion, a year-on-year increase of 3%; the total fiscal expenditure is US$7.4 trillion, a year-on-year increase of 6%.

The report shows that the main aspects of U.S. federal fiscal expenditure include social welfare projects, medical insurance projects (Medicare) and net debt interest. Among them, affected by the increase in federal debt, the net interest on federal government debt increased to US$1.05 trillion in fiscal year 2026, US$81.4 billion more than in fiscal year 2025; social welfare project expenditures increased by US$86.4 billion year-on-year to US$1.67 trillion; medical insurance project expenditures increased by US$76 billion year-on-year to US$1.07 trillion.

According to US media reports, the US federal government has run a budget deficit for 25 consecutive fiscal years. In the past 50 years, the U.S. federal government has run a surplus only four times, most recently in fiscal year 2001.

Analysts believe that the U.S. budget deficit report for fiscal year 2026 provides new evidence of the U.S. debt problem. The rapidly expanding debt burden is dragging down the overall financial situation of the United States. Although U.S. Treasury Secretary Bessent has repeatedly stated that the United States can quickly reverse the rising debt trend, many economists are skeptical. (over)