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- ⚠️CHART OF THE WEEK: Interest costs and military spending are driving the rise in government expenditures
⚠️CHART OF THE WEEK: Interest costs and military spending are driving the rise in government expenditures
The US government is running the 3rd-largest deficit in history
Global Markets Investor
May 16, 2026
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GLOBAL MARKETS INVESTOR’S PORTFOLIO IS 🔥UP +100%🔥SINCE JANUARY 2024
DURING THE MARCH-APRIL 2025 MARKET TURMOIL, MAJOR US INDEXES FELL NEARLY 20%, WHILE THE GMI PORTFOLIO GAINED OVER 5%, FIND OUT HOW BELOW:
The US Treasury budget surplus dropped -$43 billion YoY in April, or -17%, to $215 billion.
April typically produces a budget surplus, as the mid-month tax filing deadline brings in a large wave of receipts from individuals and businesses.
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This comes as receipts declined -$13 billion YoY, to $837 billion. At the same time, outlays jumped +$31 billion YoY, to $622 billion, driven by higher interest costs on public debt and military spending.
Gross interest April rose +$10 billion YoY, or 10%, to $112 billion, a new monthly record.
Military spending jumped +$6 billion YoY, or +10%,, to $73 billion.
Despite April’s surplus, the US government recorded a deficit of $954 billion over the first 7 months of Fiscal Year 2026, the 3rd-highest in history.
Over the same period, net interest surged +$37 billion YoY, to $616 billion, while defense expenditures jumped +$22 billion YoY, to $558 billion.
The US government spending remains extremely high.
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