The federal budget deficit for the first half of fiscal year 2023 totaled just over $1.1 trillion, according to a monthly report released by the Treasury Department. That’s up 65% from the $668 billion shortfall for the same period in 2022.
The federal government posted a $378 billion deficit in March, up from $193 billion for the same month last year. Adjusted for calendar effects, the March deficit was $305 billion.
“The biggest drivers of deficits this year,” says Reuters, “have been higher individual tax refunds as the Internal Revenue Service works through a substantial backlog of unprocessed returns amassed during the COVID-19 pandemic, and lower Federal Reserve earnings.”
