The U.S. Treasury said on Friday that the federal government reported a $4 billion increase in the budget deficit in March, or 2%, bringing it to $164 billion compared to the same period last year.
The increase came after new tax exemptions for individuals and companies led to a sharp rise in refunds, while relief payments to farmers also grew.
Monthly budget data did not show a significant increase in spending on the war with Iran, as military and defense program expenditures rose by only $2 billion, or 3%, reaching $65 billion during the first month of the conflict.
A Treasury official said that some war-related expenses, such as replenishing weapons stockpiles, would appear in the coming months.
Customs revenue also declined in the month following the U.S. Supreme Court’s cancellation of the broadest global tariffs imposed by President Donald Trump under emergency powers.
Customs revenues totaled $22.2 billion in March, down from $26.6 billion in February.
Total revenues in March reached $385 billion, up $17 billion, or 5%, from March 2025, while expenditures totaled $549 billion, an increase of $21 billion, or 4%, compared to the previous year.
Reuters
