According to a Bloomberg report on June 12, US tariff revenues hit a record high in May, helping to narrow the budget deficit for that month. However, with the Trump administration negotiating with trade partners and tariff measures facing legal challenges, questions about the sustainability of tariff revenues remain. The Treasury Department's monthly budget report showed that US tariff revenues reached $23 billion in May, up by $17 billion year-on-year, an increase of 270%. After adjusting for calendar year differences, the fiscal deficit for May was $316 billion, a 17% decrease from the previous year. The deficit for the first eight months of this fiscal year was $1.37 trillion. A department official told reporters that considering income deferred from 2023 to 2024 as well as calendar year differences, the deficit has narrowed by 1% since the start of this fiscal year. Another factor contributing to the improvement in the financial situation last month was the reduction in debt servicing costs. An official said this was due to lower interest expenses on inflation-protected bonds and reduced discounts on Treasury bills. Nevertheless, Treasury Secretary Scott Bessent warned earlier on Wednesday during his testimony before the House that the US will face another large deficit this fiscal year. He stated at the House committee meeting that the deficit would account for 6.5% to 6.7% of GDP, marking the third consecutive year it exceeds 6%. Bessent hopes this ratio will decrease and approach 3%. Wednesday's data also showed that increased spending on Social Security and healthcare programs continues to drive up US fiscal expenditures. (International Finance News) Original source: https://www.toutiao.com/article/7514857482527752731/ Disclaimer: This article solely represents the author's personal views. Please express your attitude by clicking the "Like" or "Dislike" button below.