The United States budget deficit hit US$1 trillion (A$1.398 trillion) for the fiscal year to February but was much lower than the same time last year, according to the Treasury Department.
Healthy tariff revenue kept the monthly U.S. budget relatively flat in February, reaching $308 billion.
However, the Supreme Court order striking down some of President Donald Trump’s tariffs could have a heavy financial impact in the future, due to refunds that still need to be issued.
Trump has imposed additional tariffs since the ruling that could continue to boost customs revenue.
The Treasury Department also revealed that the government spent a record $621 billion.
Deficit for the fiscal year to date reached $1.004 trillion, which is 12% lower than the same time last year, as government revenues rose faster than spending.
A sharp increase in tariff collections also helped narrow the gap, with customs duties totally $151 million.
This is an increase of 294% from last year’s figures.
Corporate tax revenue declines sharply, falling 17% or $27 billion from a year earlier.
Tariff revenues surpassed corporate tax revenues for the fiscal year to date in an unusual shift.
Net interest payments on the nearly $39 trillion national debt totalled $79 billion in February, more than any category except Social Security, income security, which includes programs such as unemployment insurance, housing assistance, food aid and health care.
