U.S. Budget Deficit Narrows as Tariffs Boost Revenues
The U.S. budget deficit for August decreased by $35 billion, driven by increased customs receipts from tariffs. Despite a year-to-date rise in the deficit, revenues are expected to be better due to September tax payments. Customs duties have become a crucial revenue source behind withheld tax payments.
The United States saw its budget deficit for August decrease by $35 billion compared to the previous year, thanks to tariffs that boosted net customs receipts by approximately $22.5 billion, according to the Treasury Department.
Despite a rising year-to-date deficit, reaching $1.973 trillion, there is optimism that it might not exceed $2 trillion due to higher anticipated revenues in September from quarterly tax payments.
The increase in customs receipts has established them as a significant federal revenue source, the third highest after withheld and non-withheld individual tax payments.
(With inputs from agencies.)
Advertisement
Google News