The federal deficit topped $1 trillion in the first six months of fiscal 2023 (October through March), according to the Monthly Treasury Statement released.
This was despite the fact that federal tax revenues in the first six months of this fiscal year were $2,048,196,000,000, which was the second-highest in the nation’s history (when compared to the inflation-adjusted numbers for the tax revenues collected in the first six months of previous fiscal years). From February to March, according to the Monthly Treasury Statement, the fiscal 2023 federal deficit increased by $378,077,000,000, climbing from $722,627,000,000 to $1,100,704,000,000. See this in the chart below and learn more here.
So far, in fiscal 2023, while the federal government collected $2,048,196,000,000 in taxes, it spent $3,148,900,000,000 – resulting in a deficit of $1,100,704,000,000. Below is a chart of tax collections historically.
When the historical budget numbers are adjusted for inflation into March 2023 dollars, it turns out that this year’s October-through-March federal deficit is the fourth largest in the nation’s history. In fiscal 2021, during the COVID pandemic, the October-through-March deficit was $1,944,334,490,000 in constant March 2023 dollars. That was the largest deficit the federal government has ever run in the first six months of a fiscal year.
It seems as if few politicians are concerned anymore about America’s ballooning deficit. The financing of this debt expands the money supply with the resultant inflationary effects downstream.
What could go wrong?
By Tom Williams
