MORE WINNING - US Budget shows $198 Billion SURPLUS for month - deficit down for year!

 MORE WINNING - US Budget shows $198 Billion SURPLUS for month - deficit down for year!

The U.S. budget deficit edged lower for 2025 as record-setting tariff collections helped offset what also were unprecedented numbers for payments on the spiraling national debt, the Treasury Department announced Thursday.

In a year marked by a bruising trade war and high financing costs, the federal government managed to escape with a $1.78 trillion shortfall, some $41 billion, or 2.2%, less than in fiscal 2024.

While that’s still on the high end historically, the red ink would have been still worse had it not been for a massive surge in customs duties and a September surplus of $198 billion that also set a record for the month.

President Donald Trump’s tariffs were a major contributor to tariff collections of $202 billion for the year, representing a 142% surge from 2024. September saw $30 billion in tariff payments, up 295% from the same period a year ago.

Treasury officials estimated Thursday that the dip in the budget shortfall will bring the ratio of deficit to gross domestic product to 5.9%. The measure has not been below 6% since 2022 and generally runs around the 3% area except in times of economic stress.

In an interview last week, Treasury Secretary Scott Bessent, noting Congressional Budget Office estimates that the deficit-to-GDP number would be below 6%, said “we’re on our way” to reducing the debt and deficit burden.

The impact from the deficit was felt in interest paid on the $38 trillion national debt.

Interest on the debt totaled more than $1.2 trillion, also a record and nearly $100 billion higher than the 2024 outlay.

Via CNBC.