The deficit climbed to more than 1.1 trillion dollars in the first six months of fiscal year 2023 (October to March), including nearly 30 billion for bank failures.
The US budget deficit has widened over the past six months, the Treasury Department announced on Wednesday, adding that the bankruptcies of Silicon Valley Bank (SVB) and Signature Bank had cut the budget by 29 billions of dollars.
The deficit climbed to more than 1.1 trillion dollars in the first six months of fiscal year 2023, that is to say from October to March.
Revenues fell by 3% compared to the same period of the previous year, while expenses rose by 13%.
In detail, income from taxes paid by individuals has decreased.
On the other hand, spending related to pensions, those intended for the health of the poorest and oldest (Medicare and Medicaid programs) as well as those for defense have increased.
Among the expenses are 29 billion dollars paid by the American bank deposit guarantee agency, the FDIC, “linked to Silicon Valley Bank and Signature Bank”, a Treasury official told reporters.
In the United States, bank deposits are protected by the FDIC up to $250,000 per establishment and per customer. But the American authorities had decided, exceptionally, to guarantee all deposits for SVB and Signature Bank, in order to reassure public opinion.
