Federal Deficit Jumps to $747 Billion

The federal deficit rose to $747 billion over the past nine months, a 23 percent increase compared to the same period in the previous fiscal year, according to Treasury figures released Thursday.

The Treasury Department said in the same report that the deficit is expected to exceed $1 trillion by Sept. 30, the end of the fiscal year. Revenue was up 2.5 percent, failing to keep pace with the 6.6 percent rise in outlays.

While the largest spending categories remained Social Security, defense, Medicare and health, the sixth-highest expenditure was for servicing the debt.

The amount spent on net interest was also the fastest growing category, increasing 16.4 percent, nearly twice as fast as defense spending and well above increases for Medicare, health, and Social Security.