Recent Updates

  • Korea: Credit to Households (Sep)
  • Australia: International Trade by State [Prelim] (Oct)
  • Australia: International Trade [Prelim] (Oct)
  • Australia: International Trade by State [Prelim] (Oct)
  • more updates...

Economy in Brief

U.S. Government Budget Deficit Deepens in October
by Tom Moeller  November 13, 2020

• Revenues decline and outlays surge.

The U.S. Treasury Department reported that the federal budget deficit increased to $284.1 billion during October compared to $134.5 billion twelve months earlier. The Action Economics Survey anticipated a $279.0 billion deficit for last month.

Federal government outlays jumped 37.3% y/y to $521.8 billion last month compared to a 47.3% rise during all of FY 2020. The increase was driven by a 134.9% surge in income security payments to $72.7 billion, stemming from coronavirus relief payments and a higher unemployment rate. Medicare spending surged 72.1% y/y to $96.3 billion while health care spending increased 22.9% y/y to $63.1 billion. Social security payments grew a lessened 4.4% y/y to $92.9 billion but growth in defense outlays picked up to 11.6% y/y, $79.7 billion. Interest payments eased slightly to $32.4 billion.

Overall revenues declined 3.2% y/y to $237.7 billion during October. The recession lowered individual income tax payments by 14.0% y/y to $108.7 billion, but corporate tax receipts rose 39.3% y/y to $9.2 billion. Growth in social insurance tax payments picked up slightly to 6.7% y/y to $95.9 billion, and the reduction in global economic trade lowered customs duties by 20.6% y/y to $6.2 billion.

Haver's data on Federal Government outlays are contained in USECON; detailed data can be found in the GOVFIN database. The Action Economics Forecast Survey numbers are in the AS1REPNA database.

United States Government Finance Oct FY'20 FY'19 FY'18 FY'17
Budget Balance (Billion $) -- $-284.1 $-3,132 $-984.16 $-779.00 $-665.80
Fiscal YTD -- - -- -- -- --
  As a percent of GDP -- - 16.1% 4.6% 3.8% 3.5%
% of Total (FY 2020)
Net Revenues (Fiscal Year YTD 2021, Y/Y % Change) 100 -3.2% -1.2% 4.0% 0.4% 1.5%
  Individual Income Taxes 47 -14.0 -6.4 2.0 6.1 2.7
  Corporate Income Taxes 6 39.3 -8.0 12.5 -31.1 -0.8
  Social Insurance Taxes 38 6.7 5.4 6.2 0.8 4.2
  Customs Duties 2 -20.6 -3.2 71.4 19.4 -0.8
Net Outlays  (Fiscal Year YTD 2021, Y/Y % Change) 100 37.3 47.3 8.2 3.2 3.3
  National Defense 11 11.6 5.6 8.8 0.1 6.1
  Health 11 22.9 28.0 6.1 9.8 -1.9
  Medicare 12 72.1 19.2 10.6 -1.4 0.6
  Income Security 19 134.9 145.0 3.9 -1.6 -2.1
  Social Security 17 4.4 4.9 5.7 4.5 3.1
  Veterans Benefits & Services 3 69.7 9.3 11.8 1.3 1.2
  Education, Training, Employment & Social Services 4 -4.3 75.5 43.8 -34.0 31.6
  Interest 5 -0.2 -8.2 15.7 23.6 9.1
close
large image