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America’s federal deficit is growing. This is why.

The US federal budget deficit has grown unexpectedly, reaching around $2 trillion, despite the strength of the economy. The deficit is the difference between government spending and tax revenue. It was initially projected to be about $1.7 trillion in the 2023 fiscal year, but now estimates suggest it approached $2 trillion. While President Biden’s student loan plan, which would have increased deficits, was struck down, the deficit surge is not solely attributed to Trump’s tax cuts.

20 Oct, 2023, 05:46 PM IST

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