US Government Shutdown Causes Significant Budget Deficit Surge

Record October Deficit

The US government shutdown has led to a substantial increase in the budget deficit, reaching US$ 284 billion (approximately Rp 4,751 trillion) in October 2025. This represents a US$ 27 billion (10%) year-on-year increase, primarily due to the government's financial management during the shutdown period.

Expenditure Surge

The October expenditure included US$ 105 billion in advanced payments for various government programs, particularly in military and healthcare sectors. This brought the total government spending for the month to US$ 689 billion, marking an 18% increase from the same period last year. The significant rise in expenditure has been a major contributor to the widening deficit.

Implications of the Deficit

The substantial budget deficit has important implications for US fiscal policy and economic management. It reflects the challenges in managing government finances, especially during periods of political deadlock leading to government shutdowns. The impact of such large deficits on the overall economy and financial markets will be closely monitored in the coming months.