Federal Budget Deficit Increases by $38 Billion to $1.2 Trillion: Congressional Report

‘Spending this year is now anticipated to be greater than previously projected,’ according to the Congressional Budget Office report.

Congressional Budget Office director Douglas Elmendorf sits at the head of a table during a news conference in Washington, on January 26, 2010. Chip Somodevilla/Getty Images

The federal budget deficit reached $1.2 trillion in the first eight months of 2024, marking a $38 billion increase from 2023, according to a federal report that has triggered alarms among economic analysts who warn of an “unsustainable path” if the borrowing continues.

The Congressional Budget Office (CBO), a nonpartisan congressional review agency, reported that October 2023–May 2024 revenues were more than 10 percent ($294 billion) higher and spending was 8 percent ($332 billion) higher than the prior-year period figures.