Americas

Home page

Americas

Federal budget deficit of US on track to surpass $2T this fiscal year

12 August 2026 01:47 (UTC +04:00)

The federal budget deficit is now expected to surpass $2 trillion this fiscal year, which would be one of the largest shortfalls on record as spending growth continues to outpace tax receipts, APA reports citing Fox Business.

The nonpartisan Congressional Budget Office (CBO) on Monday released its monthly budget update for July, which showed the federal government ran a nearly $1.8 trillion deficit through the first 10 months of fiscal year 2026, which runs through the end of September.

That figure represents an increase of $169 billion when compared with the same 10-month period in fiscal year 2025. Federal spending increased $308 billion from a year ago, outpacing the $139 billion rise in tax receipts.

CBO also noted it now estimates the budget deficit will rise to $2.1 trillion, up $200 billion from last fiscal year, for the full fiscal year 2026 based on information available through the end of July.