The deficit rose roughly $320 billion from the previous period and is equal to 6.3 percent of U.S. gross domestic product (GDP).
Biden administration officials attributed to spike in the deficit to a steep drop in federal revenue, which rose sharply during rapid economic rebound from the COVID-19 pandemic.
Federal receipts dropped by 9.3 percent from fiscal 2022, almost entirely due to a $456 billion decline in individual income taxes.
The government has also been gradually rolling out billions of dollars in funding for green energy, infrastucutre and other Biden administration initatives that officials say has boosted the economy through choppy waters.
“The U.S. economy remains resilient despite global headwinds. Previous expectations that the U.S. would fall into recession over the course of 2023 have not borne out,” Treasury Secretary Janet Yellen said in a statement.
“The Biden Administration continues to focus on navigating our economy’s transition to healthy and sustainable growth. As we do, the President and I are also committed to addressing challenges to our long-term fiscal outlook.”
The Hill’s Sylvan Lane digs in here.
