Key facts
- US fiscal 2026 budget deficit reached $1.99 trillion.
- This marks the largest budget shortfall in five years.
- Record debt-service outlays totaled $1.36 trillion.
- Net tariff receipts declined due to $145 billion in refunds.
The US budget deficit for fiscal year 2026 widened to $1.99 trillion, an increase of $217 billion from the previous year, according to Treasury Department figures released on Friday. This marks the largest budget shortfall in five years and the third-largest on record. The rise was attributed to record spending on debt servicing, which totaled $1.36 trillion, and a significant drop in net tariff receipts due to $145 billion in refunds following a Supreme Court ruling. Total receipts reached a record $5.40 trillion, while outlays also hit a record $7.40 trillion. The deficit-to-GDP ratio for fiscal 2026 was estimated at 6.2%.