U.S. Secretary of the Treasury Janet L. Yellen and OMB Director Shalanda D. Young revealed the 2023 fiscal data, spotlighting both economic growth and rising deficits.
Despite global uncertainties, the U.S. economy remains resilient, adding nearly 14 million jobs since President Joe Biden took office and keeping the unemployment rate below 4%. The administration credits its approach of building the economy from the middle out for these positive trends.
For fiscal year 2023, the United States reported a deficit of $1.7 trillion, $320 billion higher than the previous year. This accounted for 6.3% of the GDP but was lower than initial estimates published earlier this year. Governmental receipts were $4.4 trillion and outlays totaled $6.1 trillion. Federal borrowing from the public increased by $2.0 trillion, reaching a level that represents 98% of GDP.
Yellen commented that policy initiatives such as a corporate minimum tax and cracking down on tax evasion among the wealthy are expected to reduce the deficit in the coming years. Young added that their investments continue to benefit working families and communities, aligning with Biden's focus on middle-class growth and meaningful deficit reduction.
The fiscal landscape for FY 2023 presents deficits and borrowing as significant concerns. Overall, governmental receipts were lower than estimates due to legislative proposals that were not enacted and other economic factors. Outlays for various departments presented a mixed bag of over and underestimates, reflecting the complexities of budgeting in an unpredictable environment.
In summary, the final budget figures for FY 2023 emphasize the need for continued fiscal responsibility and strategic investment to foster sustainable economic growth.