Business

$1.97 trillion deficit & counting: US gap barely budges

By Sohail Khan 11 September 2026, 11:33 pm

Benchmarks
Nifty23,398.10-79.71

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
21.93 %

Invest Now

Enter search text:

Business News›News›International›World News›US budget deficit shrinks in August, year-to-date flat at $1.97 trillion

Read Today's Paper

US budget deficit shrinks in August, year-to-date flat at $1.97 trillion
Synopsis

The US federal budget deficit decreased significantly in August. This reduction occurred due to lower spending and some payment shifts. However, the fiscal year-to-date budget gap remained largely unchanged. August receipts saw an increase, including customs revenue after refunds. The overall deficit for eleven months exceeds the projected full-year 2025 deficit.

The U.S. federal budget deficit for August shrank to $167 billion due to smaller outlays including for ongoing refunds on illegally collected tariffs, a rare drop in interest payments and some calendar shifts in benefit payments, while ‌the fiscal-year-to-date ⁠budget ⁠gap was essentially flat, totaling $1.97 trillion, the U.S. Treasury said on Friday.

The budget gap for the 11 months through August exceeds the full-year fiscal 2025 deficit of $1.775 trillion. For August alone the budget gap was down 52% from a year earlier. ⁠Adjusting for calendar ‌shifts that mean some August Medicare and other payments were made in July ⁠puts the month's deficit at $248 billion, up $7 billion from a year earlier.

Unadjusted outlays in August fell by 24%, to $527 billion. Interest payments on the federal debt fell by $14 billion. A Treasury official said the drop was due to changes in inflation accruals, and pointed ‌to the fiscal year-to-date data showing an increase of $143 billion, or 13%, from the same period a ⁠year earlier.

Unadjusted August receipts were up $16 billion,or 5%, to $360 billion. This included a $12.84 billion inflow of net customs receipts, the first uptick since April, after tariff refunds totaling $10.54 billion for the month, about a third of the July refunds total of $33.38 billion.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(You can now subscribe to our WhatsApp channel)

Read More News on
US budget deficitfederal budget deficitTreasury Department reportMedicare paymentsinterest payments on debtUS Treasurytariff refundsbudget gap reductionU.S. Treasury

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year