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Economic Buzz: US federal budget deficit declines 26% on year in January
12-Feb-2026 08:00
The US federal government's budget deficit reached $95 billion in January, marking a 26% decline year-on-year, according to data from the Treasury Department released Wednesday.

The federal government had a budget deficit of $129 billion in January 2025.

Government revenues rose 9% year-on-year to $560 billion in January, while expenditures increased 2% year-on-year to $655 billion.

Customs duties collected through tariffs totaled $30 billion for the month, jumping 275% year-on-year, according to the data.

In the first four months of the 2026 fiscal year, which began last October, the country's total budget deficit fell 17%, compared to the same period of the previous fiscal year, declining to $697 billion.

This deficit was $840 billion in the same period of the previous year.

As of the end of the fourth month of the fiscal year, revenues climbed 12% year-on-year to $1.78 trillion, while expenditures were up 2% to $2.48 trillion.

The fiscal year-to-date tariff revenues amounted to $124 billion, soaring 304%, compared to the same period in 2025.

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