The US Treasury Department said on Friday that the overall budget gap expanded by $138 billion for the fiscal year ending September 30, 2024.

The Treasury attributed the widened budget deficit to a near 30 percent rise in spending on interest on the public debt, largely due to higher interest rates.

It added that the deficit was also partly due to a reversal of over $330 billion in costs last year, when US President Joe Biden’s student loan forgiveness program was struck down by the Supreme Court.

One White House official blamed the widening deficit on congressional Republicans for “tax cuts that led to low revenue levels that increased the debt.”

In addition, there was an overspending on the military and a rise in the Social Security expense which worsened the critical situation.

Despite the crisis, Treasury Secretary Janet Yellen claimed the US economy had not only remained strong, but also showed growth in 2024 as a result of the Biden-Harris administration’s successful performance.

She also claimed the government’s megadebt could have been $4.8 trillion if the Biden administration hadn’t saved $3 trillion.

According to the Treasury Department, the US budget deficit this year marks the third highest megadebt, after 2021 and 2020.

DID/