The federal government has borrowed roughly $1.2 trillion in the eight-month period ending in May, the Congressional Budget Office (CBO) estimated in a report on Monday.
The nonpartisan budget scorekeeper said the figure is $38 billion above the federal budget deficit recorded during the same period in fiscal 2023.
Total outlays were up 8 percent in the past eight months, reaching $4.5 trillion, as the CBO noted a 42 percent increase in net outlays for interest on the public debt. The percentage represents an estimated $185 billion increase over the same period in fiscal 2023; the office pointed to rising interest rates as a key contributor.
Spending for programs like Social Security, Medicare and Medicaid jumped 6 percent on net during the same time frame, amounting to a $117 billion increase, the CBO estimated.
Medicare was projected to have seen the biggest bump, as outlays rose 10 percent, or $51 billion, in a large part due to “increased benefit payments to Medicare Advantage plans,” the CBO said. Spending for Social Security benefits rose 8 percent, or $74 billion, following a rise in beneficiaries and average benefit payments.
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