Fed Budget Deficit Hits $1.1 Trillion First Half of Fiscal 2023, $430 Billion Higher Than Last Year

Government spending was 13% higher so far this year compared to 2022, while revenues dropped 3%, the CBO said. Higher interest rates are a main driver of this year’s higher deficit, as the government paid $90 billion more in interest payments in the first half of fiscal year 2023 compared to 2022.