Global| Apr 12 2021U.S. Government Budget Deficit Widens During March
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. Treasury Department reported a federal budget deficit of $659.6 billion during March compared to a deficit of $119.0 billion one year earlier. For the first six months of this fiscal year the deficit rose to $1.706 trillion. [...]
The U.S. Treasury Department reported a federal budget deficit of $659.6 billion during March compared to a deficit of $119.0 billion one year earlier. For the first six months of this fiscal year the deficit rose to $1.706 trillion.
Federal government outlays have risen 45.3% y/y so far in FY'21. The increase has been driven by a 243.4% surge in income security payments due to coronavirus relief payments, economic stimulus checks and outlays related to a higher unemployment rate. Spending on health programs also surged 28.2% y/y. Medicare payments rose 4.6% y/y and Social Security payments increased 3.9% y/y. Defense outlays rose 4.2% y/y so far in FY'21 but interest payments fell 15.1% y/y.
Overall revenues have increased 6.3% y/y so far this fiscal year. Individual income tax payments rose 4.2% y/y in FY'21 due to improved economic growth while corporate tax payments increased even more quickly. Social insurance taxes rose 3.7% y/y, but the reduction in global economic trade lowered customs duties by 6.5% y/y.
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.
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