Core Points - The U.S. Treasury reported a decrease in the budget deficit for fiscal year 2025 to $1.775 trillion, down $410 billion from the previous year, marking the first annual decline since 2022 [1] - The reduction in the deficit is attributed to record net tariff revenues of $195 billion, which increased by $118 billion due to the implementation of new tariffs [1] - Total federal revenue for fiscal year 2025 reached a record $5.235 trillion, an increase of $317 billion or 6% from $4.918 trillion in 2024 [1] - Federal spending for fiscal year 2025 also hit a record high of $7.01 trillion, up $275 billion or 4% from $6.735 trillion in the previous fiscal year [1] - The estimated deficit as a percentage of GDP for fiscal year 2025 is 5.9%, compared to 6.3% for fiscal year 2024 [1] - In September 2025, the last month of the fiscal year, a record surplus of $198 billion was recorded, an increase of $118 billion or 147% from the same month the previous year [1]