US federal government begins fiscal year 2026 with $284B budget deficit

​​​​​​​By Sevgi Ceren Gokkoyun and Mucahithan Avcioglu

The US federal budget deficit rose to $284 billion in October, the first month of the 2026 fiscal year, with a 10% increase compared to the same time last year, Treasury Department data showed Tuesday.

In fiscal year 2025, the government ran a budget deficit of approximately $257 billion in the same month.

Government revenues increased 24% year-on-year to $404 billion in October, while spending climbed 18% to $689 billion.

The deficit declined 2% annually to $1.775 trillion in the 2025 fiscal year.

Record-high tariff revenues contributed to the reduction, the data showed.