WASHINGTON, Jan 13, 2023 (BSS/AFP) - The US budget deficit widened in the first three months of the government's fiscal year on greater social security spending and higher interest payments on debt, the Treasury Department said Thursday.

While pandemic-related spending went down and there were lower unemployment benefits paid out as economic recovery from Covid-19 continued, the government also brought in a smaller amount of revenues, data showed.

This caused the deficit to grow 12 percent to $421 billion in the October to December period, from the same window a year prior, the Treasury said.

Spending totaled $1.4 trillion in the quarter, a similar level as the comparable period a year earlier.

In particular, interest on public debt rose 10 percent in December and 37 percent in the most recent quarter, a Treasury official said Thursday.

This segment has seen one of the biggest increases so far in the fiscal year.

A category that also saw greater spending was education, on the back of "increased modifications or estimates for subsidies, primarily in the direct student loan programs," the official said.