The deficit shrank by 15 percent from the prior fiscal year, from US$711 billion to US$602 billion.

Overall revenue climbed by 13 percent to US$1.2 trillion, while spending rose by two percent overall to US$1.8 trillion.

Both the revenues and outlays were records, a senior Treasury official told reporters.

Among categories, some taxes collected from individuals increased notably while customs duties surged from US$23 billion a year ago to US$94 billion in the first three months of the current fiscal year.

The leap in duties collections was primarily due to higher tariffs, the official said.

Since returning to the White House last January, President Donald Trump has rolled out wide-ranging duties impacting virtually every US trading partner.

Besides touting the duties as leverage in trade talks with other countries, Trump has also pointed to tariff incomes as a way to reduce the government’s deficits.

In August, the US leader pointed to a Congressional Budget Office projection that changes in tariffs would reduce total deficits by US$4.0 trillion altogether over a decade.

But critics warn that whether the revenues are fully realized depends on how the economy reacts to higher duties.

Many of Trump’s sweeping tariffs also face legal challenges, with the Supreme Court due to rule on their legality after hearing arguments late last year. The ruling does not impact sector-specific duties, but could affect country-specific ones.

Among the government’s outlays, spending by the Treasury jumped by US$48 billion, driven by interest on the public debt and largely due to the higher amount of outstanding debt overall.

Spending by the Health and Human Services — relating to Medicare and Medicaid — picked up by US$34 billion.