Budget deficit swells in November, pushing fiscal 2025 shortfall 64% higher than a year ago

The U.S. budget deficit swelled in November, putting fiscal 2025 already at a much faster pace than a year ago when the shortfall topped $1.8 trillion, the Treasury Department reported Wednesday.

For the month, the deficit totaled $366.8 billion, 17% higher than November 2023 and taking the total for the first two months of the fiscal year more than 64% higher than the same period a year ago on an unadjusted basis.

The increase came despite receipts that totaled $301.8 billion, about $27 billion more than last November. Outlays totaled $668.5 billion, or nearly $80 billion more from a year ago.

The increase in red ink brought the national debt to $36.1 trillion as the month drew to a close.

On an adjusted basis, the deficit was $286 billion and has totaled $544 billion year to date, an increase of 19%.

Though the Fed has enacted two rate cuts since September totaling three-quarters of a percentage point, interest expenses continue to be a big contributor to the deficit. Net interest expenses totaled $79 billion on the month and are now at $160 billion for the fiscal year, outpacing all other outlays except Social Security, Medicare, defense and health care.

The Treasury Department expects to pay $1.2 trillion this year in total interest on debt.