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Economy in Brief

U.S. Government Budget Deficit Narrows in Fiscal Year 2022
by Tom Moeller  October 21, 2022

• Revenues continue to rise despite economy's slowing.

• Spending declines absent stimulus checks.

The U.S. Treasury Department reported a federal budget deficit of $1.375 trillion during fiscal year 2022 compared to a $2.776 trillion deficit one year earlier. For September alone, the deficit totaled $429.7 billion. The Action Economics Forecast Survey expected a $24.6 billion deficit for September.

Overall revenues improved 21.0% y/y in FY'22. Individual income tax receipts increased 28.8% y/y as employment continued to rise. Corporate tax payments rose 14.3% y/y with strength in business earnings. Social insurance taxes rose 12.9% y/y in FY'22 and excise taxes grew 16.5% y/y.

Federal government outlays declined 8.1% y/y in FY'22. Income security payments nearly halved this year in the absence of economic stimulus checks. National defense outlays grew 1.6% y/y in FY'22. Outlays on health programs rose 14.8% y/y in FY'22. Social Security outlays increased 7.4% y/y last fiscal year and Medicare outlays rose 8.4%. Interest payments surged 34.9% 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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