In a new insight, Director of Fiscal Policy Jordan Haring breaks down the data in the U.S. Department of Treasury’s final Monthly Treasury Statement for fiscal year (FY) 2025.

Key points:

• The U.S. Department of the Treasury’s Statement shows a $1.8 trillion budget deficit for the year – $41 billion lower than the deficit recorded in FY 2024; the FY 2025 deficit was the net effect of $5.2 trillion of revenue collections and $7.0 trillion of spending.
• As a share of the economy, the FY 2025 deficit was an estimated 5.8 percent of gross domestic product (GDP).
• Federal debt held by the public increased by $2.0 trillion to $30.3 trillion; as a share of the economy, debt totaled an estimated 98 percent of GDP.
• Interest payments on the national debt totaled $970 billion, surpassing spending on national defense and Medicare; net interest was the second-largest federal government expenditure behind Social Security.

Read the analysis.