U.S. October budget deficit expands to $257bn

The U.S. budget deficit widened further during October, the first month of fiscal 2025, due in large part to higher spending on health and defense. The Treasury Department said that the deficit rose 287% to $257bn. Federal receipts for October were down 19% to $327bn compared with October 2023, while outlays were up 24%, or $114bn, to $584bn. Spending increases were offset to an extent by an 8% decline in the Treasury’s public debt service costs to $82bn, along with the receipt of around $75bn in tax payments that had been deferred by wildfires in California and other natural disasters.