Federal tax collections rose modestly last year, but government spending surged at twice the rate, straining fiscal resources. Meanwhile, the cost of servicing national debt reached over $1.1 trillion, highlighting growing financial pressures. Economists warn the widening gap between revenue and outlays could limit funding for other priorities. The report underscores persistent challenges in balancing the budget amid rising borrowing costs.
Tax revenue increased by about 3 percent last year, but spending increased twice as fast. And interest payments on the debt cost more than $1.1 trillion.
