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Economy in Brief

U.S. Federal Government Budget Deficit Narrows in March
by Tom Moeller  April 12, 2022

• Tax revenues continue to surge.

• Outlays fall gain as spending on income security & defense decline.

• Interest payments jump.

The U.S. Treasury Department reported a federal budget deficit of $192.7 billion during March 2022 compared to a $659.6 billion deficit in March 2021. Receipts rose 8.7% from February (17.8% y/y) while outlays edged 0.3% higher (-45.2% y/y). The Action Economics Forecast Survey had expected a $132 billion deficit. So far in FY'22, the deficit has totaled $668.3 billion versus $1.706 trillion in the first six months of FY'21.

Overall revenues have increased 24.5% y/y so far in FY'22. Individual income tax receipts increased 36.3% y/y as employment levels continued to rise. Corporate tax payments rose 22.1% with strength in business earnings. Social insurance taxes rose 8.8% y/y and excise taxes rose 26.9% y/y.

Federal government outlays have declined 18.2% year-to-date in FY'22 versus FY'21. Income security payments roughly halved so far this year in the absence of economic stimulus checks. National defense outlays fell 1.2% y/y so far in FY'22. Outlays on health programs rose 20.3% y/y in the first six months of FY'22. Social Security outlays increased 6.0% y/y so far this fiscal year and Medicare outlays rose 0.5% y/y so far this fiscal year. Interest payments surged 24.9% y/y so far in FY'22.

Haver's data on Federal Government receipts & outlays are contained in USECON. The expectations figure is in the AS1REPNA database.

United States Government Finance Mar FY'21 FY'20 FY'19 FY'18
Budget Balance (Billion $) -- -$192.7 -$2,710.64 -$3,007.31 -$1,067.16 -$898.11
Fiscal YTD -- -668.3 -- -- -- --
% of Total (FY 2021)
Net Revenues (Fiscal Year YTD 2022, Y/Y % Change) 100 24.5 17.7 -1.3 3.4 0.6
  Individual Income Taxes 51 36.3 27.1 -6.4 2.0 7.0
  Corporate Income Taxes 9 21.9 75.5 -8.0 12.5 -31.1
  Social Insurance Taxes 32 8.8 0.3 5.4 6.2 0.8
Net Outlays  (Fiscal Year YTD 2022, Y/Y % Change) 100 -18.2 4.0 45.7 7.0 6.7
  National Defense 11 -1.2 4.0 5.6 8.8 0.1
  Health 12 20.3 6.4 28.1 6.1 9.8
  Medicare 10 0.5 -10.3 19.2 10.6 -1.4
  Income Security 24 -51.2 30.6 145.0 3.9 -1.6
  Social Security 17 6.0 3.5 5.7 4.5 3.1
  Interest 5 24.9 2.2 -8.2 15.7 23.6
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