Treasury Secretary Scott Bessent recently shared promising news about the state of the nation’s finances. His statements highlight a significant improvement in the deficit under policies attributed to former President Trump. In stark contrast to the previous administration, Bessent noted the current calendar year-to-date deficit stands at $1.52 trillion. This figure marks a 21% reduction compared to the $1.93 trillion deficit during Biden’s comparable period last year. This perspective on fiscal responsibility underscores a broader narrative of economic recovery initiated by Trump’s policies.
Bessent emphasized that not only is the deficit declining, but the size of the economy is also expanding. He pointed out that the full calendar year 2025 budget deficit to GDP could reach around 5.5%. This is a notable reduction from the projected 6.8% deficit under Biden in 2024. Bessent’s assertions reveal a sense of optimism regarding the U.S. fiscal landscape moving forward.
Additionally, revenue collection for the federal treasury in fiscal year 2025 reached an impressive $5.23 trillion, up from $4.9 trillion in fiscal year 2024. This $300 billion increase could be attributed, in part, to the revenue generated from new tariffs, which rose to $195 billion. The timing of Trump’s tariff implementation in April, halfway through the fiscal year, further signifies the potential positive impact of these economic measures.
Bessent advocated for the tax cut plan before the passage of the “Big Beautiful Bill.” In his appearances on Fox News, he discussed the importance of growing the economy while managing national debt. “What’s important… is that the economy grows faster than our debt,” he stated. This approach highlights a strategy focused on economic growth as the primary means to stabilize and ultimately reduce debt.
Looking back, the deficit under Biden peaked at $2.78 trillion in 2021 but saw a faithful reduction to $1.8 trillion last year, with a projection of $1.9 trillion for fiscal year 2025. However, that number was revised downward to $1.78 trillion, showcasing the effects of the new Trump policies. Bessent’s comments about the deficit-to-GDP ratio moving from 12.4 percent in 2021 show the preeminent changes expected due to shifts in fiscal policy.
Discussing the administration’s fiscal goals, Bessent introduced the concept of a “3-3-3” agenda: reducing deficit spending to 3 percent of GDP, growing the economy at 3 percent annually, and increasing U.S. oil production by 3 million barrels a day. Current trends indicate that all these targets are in motion, with GDP growth reaching an estimated 3.6 percent in the third quarter, an improvement from the 2.3 percent rate in Biden’s final quarter. Oil production is also up by about 500,000 barrels per day, reinforcing the reality that the economy is being influenced positively under Trump’s policies.
Bessent’s assessment leaves little doubt: the U.S. economy is on a more favorable trajectory. As the deficit and economic growth shift in the right direction, there is a prevailing feeling of momentum heading toward 2026. Bessent’s remarks certainly echo a commitment to achieving fiscal responsibility and economic vitality.
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