Bloomberg reviewed the numbers here and found that one of the main drivers of the increased US budget deficit in 2023 is… revenue.
Specifically, there was a $456 billion drop in individual income-tax receipts, the biggest change in flows in two years. That’s partly the result of declines in financial markets and filing extensions granted as a result of disasters, especially in California.
Other factors were inflationary adjustments to federal benefits such as Social Security, higher interest payments on the federal debt, bailouts for customers of failed banks and higher defense spending.