"US January Deficit Shrinks as Receipts Rise and Tax Refunds Decline"
The US federal budget deficit for January dropped to $22 billion as receipts reached a record high, partly due to a decrease in tax refunds after the IRS cleared a backlog of pandemic-delayed returns. The deficit was 43% lower than in January 2023, with outlays growing by 3% to $499 billion and receipts jumping by 7% to $477 billion. The deficit for the first four months of the fiscal year increased by 16% to $532 billion, driven by rising costs for servicing the national debt, Social Security, Medicare, and military programs. Interest costs on the public debt grew by 35% due to higher interest rates and debt levels, while Medicare and Social Security costs also rose.