The U.S. budget deficit grew to $1.833 trillion for fiscal 2024, the third highest on record.

The other two years when the U.S. budget was higher than $1.8 trillion were in 2020, when the deficit rose to $3.13 trillion, driven by the COVID-19 pandemic and stimulus relief measures. In 2021, the deficit was $2.78 trillion, as the government continued pandemic-related spending.

U.S. receipts for the 2024 fiscal year hit a record $4.919 trillion, up 11%, or $479 billion, from a year earlier, as individual non-withheld and corporate tax collections grew. Fiscal 2024 outlays rose 10%, or $617 billion, to $6.752 trillion.

The biggest driver of the year's deficit was a 29% increase in interest costs for Treasury debt to $1.133 trillion, topping outlays for the Medicare healthcare program for seniors and defense spending.

But a senior Treasury official said the weighted average interest rate on federal debt interest costs began to decline in September for the first time since January 2022.

For September, the government reported a $64 billion surplus, compared to a $171 billion deficit in September 2023, but the improvement was largely due to calendar adjustments for benefit payments. Without these, there would have been a $16 billion deficit in September 2024.

Reported receipts were a record for September at $528 billion, up 13% from a year earlier, while outlays were $463 billion, down 27% largely due to the calendar adjustments.