U.S. Federal Government Budget Deficit Deepens in August
by:Tom Moeller
|in:Economy in Brief
Summary
- 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.
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
Global
