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Economy in Brief

U.S. Federal Government Budget Deficit Deepens in August
by Tom Moeller  September 13, 2022

• Tax receipts remain firm YTD.

• Outlays decline with low unemployment.

The U.S. Treasury Department reported a federal budget deficit of $219.6 billion in August 2022 compared to a $170.6 billion deficit one year earlier. The Action Economics Forecast Survey expected a $220.5 billion deficit for August. So far in FY'22, the deficit has totaled $945.7 billion versus $2.711 trillion in the first eleven months of FY'21.

Overall revenues have improved 22.9% y/y so far in FY'22. Individual income tax receipts increased 31.4% y/y as employment continued to rise. Corporate tax payments rose 11.9% y/y with strength in business earnings. Social insurance taxes rose 13.9% y/y so far in FY'22 and excise taxes grew 17.6% y/y.

Federal government outlays have declined 15.0% y/y so far in FY'22 versus FY'21. Income security payments nearly halved this year in the absence of economic stimulus checks. National defense outlays have eased 0.3% y/y so far in FY'22. Outlays on health programs rose 15.4% y/y in the first 11 months of FY'22. Social Security outlays increased 7.3% y/y this fiscal year and Medicare outlays have risen 2.2% y/y so this fiscal year. Interest payments surged by 31.6% y/y.

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

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