US Deficit Hits Record High in Trump’s First Month

The United States’ national debt and budget deficit have worsened in President Donald Trump’s first month in office. According to the latest report from the US Department of Treasury, the budget deficit for February 2025 has exceeded US$ 1 trillion or approximately Rp 16,453 trillion (assuming an exchange rate of Rp 16,453), despite the fiscal year not even reaching its midpoint.

Although government spending saw a slight decline, expenditures still far outpaced revenue. The deficit for February alone reached over US$ 307 billion (Rp 5,051 trillion), marking a 3.7% increase compared to February 2024.

In total, the US deficit for the first five months of the 2025 fiscal year has reached US$ 1.15 trillion (Rp 18,921 trillion). This figure is US$ 318 billion (Rp 5,234 trillion) higher than the same period last year, representing a 38% increase, setting a new record for this timeframe.

Growing National Debt Burden

A key concern remains the US national debt burden, which has now reached US$ 36.2 trillion (Rp 595.6 quadrillion). While February’s interest payment slightly declined to US$ 74 billion (Rp 1,217 trillion), the total interest payments for the fiscal year so far have amounted to US$ 396 billion (Rp 6,518 trillion).

"Interest payments are now the third-largest expenditure after national defense and healthcare. Meanwhile, Social Security and Medicare remain the biggest fiscal burdens," stated a US Treasury spokesperson, as quoted by CNBC International, Thursday (March 13, 2025).

The US budget deficit has significantly increased over the past three years under former President Joe Biden, rising from US$ 1.38 trillion (Rp 22,710 trillion) to US$ 1.83 trillion (Rp 30,106 trillion).

Trump Establishes Efficiency Council, Plans Tax Cut Extensions

Since returning to office, Trump has made fiscal recovery one of his top priorities. He established the Department of Government Efficiency (DOGE), led by Elon Musk.

This advisory board has spearheaded job cuts across various departments and introduced early retirement incentives. However, according to the Treasury Department, no significant impact has been observed from these measures yet.

At the same time, Trump is pushing to extend the Tax Cuts and Jobs Act, a policy originally introduced during his first term. While Trump claims that extending these tax cuts will boost economic growth, several think tanks warn that this move could add US$ 3.3 trillion (Rp 54,249 trillion) to the deficit over the next decade.

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