The fiscal 2025 shortfall is projected to increase by 64% due to the growing budget deficit in November.

In November, the U.S. budget deficit increased, causing fiscal 2025 to be on track for a much faster pace than the previous year when the shortfall reached $1.8 trillion, according to the Treasury Department.

The deficit for the month was $366.8 billion, which is 17% higher than the previous month and 64% higher than the same period in the previous year on an unadjusted basis.

Despite receipts totaling $301.8 billion, which was about $27 billion more than the previous November, outlays totaled $668.5 billion, which was nearly $80 billion more than the previous year.

As the month drew to a close, the national debt reached $36.1 trillion due to the increase in red ink.

The deficit has increased by 19% to a total of $544 billion year to date, amounting to $286 billion on an adjusted basis.

Despite the Fed's implementation of two rate cuts since September, totaling three quarters of a percentage point, interest expenses remain a significant contributor to the deficit. In fact, net interest expenses amounted to $79 billion in the month and have accumulated to $160 billion for the fiscal year, surpassing all other expenditures except for Social Security, Medicare, defense, and healthcare.

This year, the Treasury Department anticipates spending a total of $1.2 trillion on interest payments for its debt.