⚠️CHART OF THE WEEK: The US is running a crisis-level budget deficit

In the first 11 months of Fiscal Year 2025, the budget deficit hit $1.97 trillion, the third-largest in history.

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The US recorded a $345 billion budget gap in August, the second-largest for any August in history.

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This also equals to ~7% of GDP, far above the 1950–1990s levels.

The gap widened from July’s $291 billion deficit and was only surpassed by last year’s $380 billion.

Government spending surged to $689 billion, from $687 billion in August 2024. Revenue rose +12% year-over-year to $344 billion, including $29.5 billion in tariff receipts.

Through 11 months of Fiscal year 2025, the deficit has hit a whopping $1.97 trillion, the 3rd-largest in history, only after 2020 and 2021.

The US public debt crisis is getting worse.

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