Global| Nov 13 2020U.S. Government Budget Deficit Deepens in October
by:Tom Moeller
|in:Economy in Brief
Summary
• 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 [...]
• 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.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
