US budget deficit widens despite higher tariff revenues

The US recorded all-time high revenues from tariffs in August. However, the federal budget deficit reached the third-highest level so far in the current fiscal year.

The monthly budget deficit hit $345 billion, up 15% from the same month last year, data released Thursday by the Treasury Department showed.

The cumulative deficit through August stood at $1.97 trillion, ranking only behind the levels of 2020 and 2021, when government spending surged dramatically to counter the impact of the pandemic.

This came despite a 296% year-on-year surge in tariff revenues to $30 billion in August, bringing the total for the first 11 months of the fiscal year to $172 billion.