US Budget Deficit Surges to **$432 Billion** in July, Highest Since **March 2021**

• US budget deficit hit $432 billion in July, highest since March 2021.
• Record federal spending of $766 billion drove the increase.
• Cumulative fiscal year deficit nears $1.8 trillion.

The United States government reported a significant budget deficit of $432 billion in July, marking a record for the month and the highest single-month deficit since March 2021. This figure substantially surpassed the consensus estimate of $346 billion and last year’s July deficit of $291 billion. The primary driver behind this surge was record federal spending, which reached $766 billion in July, alongside rising Medicare costs and increasing interest payments on the national debt. For the first ten months of the fiscal year, the cumulative deficit has grown to nearly $1.8 trillion, highlighting ongoing public borrowing needs. While monthly figures can be influenced by calendar effects, the overall trajectory of US government debt remains a focal point for fiscal observers.