The US government’s fiscal 2023 budget deficit reached $1.695 trillion, up 23% from the previous year, due to declining revenues and increased federal debt interest payments.

The Treasury Department reported the highest deficit since a $2.78 trillion COVID-19 imbalance in 2021.

The deficit is exacerbated by President Joe Biden’s fiscal battles with Republicans, who have cut spending, and the ongoing party division.

The fiscal year-end deficit dropped to $171 billion from $430 billion in September 2022.

The Supreme Court’s ruling on Biden’s student debt forgiveness program reduced the deficit by $321 billion.