U.S. Federal Government Budget Deficit Shrinks in February
by:Tom Moeller
|in:Economy in Brief
Summary
- Revenues surge with stronger employment.
- Outlays continue to fall with fewer income security outlays.
- Interest payments multiply.
The U.S. Treasury Department reported a federal budget deficit of $216.6 billion during February 2022 compared to a $310.9 billion deficit in February 2021. Receipts declined 37.7% from January (+16.7% y/y) while outlays rose 46.2% (-9.4% y/y). The Action Economics Forecast Survey had expected a $214 billion February deficit. So far in FY'22, the deficit has totaled $475.6 billion versus $1.047 trillion in the first five months of FY'21.
Overall revenues have increased 25.8% y/y so far in FY'22. Individual income tax receipts increased 38.3% y/y as employment levels continued to rise. Corporate tax payments rose 31.4% with strength in business earnings. Social insurance taxes rose 8.1% y/y and excise taxes rose 30.0% y/y.
Federal government outlays have declined 8.1% year-to-date in FY'22. Income security payments declined 28.8% so far this year because of the absence of economic stimulus checks, which had been issued in 2021. National defense outlays edged 0.2% higher y/y so far in FY'22. Outlays on health programs rose 20.0% y/y in the first five months of FY'22. Social Security outlays increased 5.5% so far this fiscal year and Medicare outlays rose 1.2% y/y so far this fiscal year. Interest payments have gained 21.9% y/y so far in FY'22.
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.
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