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Economy in Brief

U.S. Federal Government Budget Deficit Shrinks in May
by Tom Moeller  June 13, 2022

• Outlays & spending decline y/y.

• Income security outlays fall sharply.

• Interest payments surge.

The U.S. Treasury Department reported a federal budget deficit of $66.2 billion in May 2022 compared to a $132.0 billion deficit one year earlier. Receipts fell 55.0% m/m and were off 16.1% y/y while outlays declined 18.0% (-23.6% y/y). The Action Economics Forecast Survey had expected a $210 billion deficit for May. So far in FY'22, the deficit has totaled $426.2 billion versus $2.064 trillion in the first eight months of FY'21.

Overall revenues have increased 29.5% y/y so far in FY'22. Individual income tax receipts increased 45.9% y/y as employment continued to rise. Corporate tax payments rose 17.0% with strength in business earnings. Social insurance taxes rose 8.7% y/y so far in FY'22 and excise taxes rose 23.3% y/y.

Federal government outlays have declined 18.6% year-to-date in FY'22 versus FY'21. Income security payments roughly halved so far this year in the absence of economic stimulus checks. National defense outlays fell 1.8 % y/y so far in FY'22. Outlays on health programs rose 18.2% y/y in the first eight months of FY'22. Social Security outlays increased 6.7% y/y this fiscal year and Medicare outlays rose 0.8% y/y so far this fiscal year. Interest payments surged by 29.6% 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.

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