Washington – Reuters. The U.S. Treasury said on Friday that the federal government reported a budget deficit in March that rose by $4 billion, or 2%, to $164 billion compared to the same period last year. The increase came after new individual and corporate tax cuts led to a sharp rise in refunds, while also increasing relief payments to farmers. Monthly budget data did not show a significant increase in war-related spending with Iran, as military and defense program costs only rose by $2 billion, or 3%, to $65 billion during the first month of the conflict. A Treasury official said several war-related expenses, such as replenishing weapons stockpiles, would appear in subsequent months. Customs duty revenues also fell in the month following the U.S. Supreme Court's cancellation of the broadest global tariffs imposed by President Donald Trump under a national emergency law. Customs revenues reached $22.2 billion in March, down from $26.6 billion in February. Revenues in March totaled $385 billion, an increase of $17 billion or 5% from March 2025, while expenditures reached $549 billion, an increase of $21 billion or 4% from the previous year.
