U.S. Government Budget Deficit Deepens During November
by:Tom Moeller
|in:Economy in Brief
Summary
- Monthly receipts fall and outlays rise.
- Growth in Federal government receipts strengthen so far in FY'22.
- Defense, Medicare & interest outlays decline this year.
The U.S. Treasury Department reported a federal budget deficit of $191.3 billion during November compared to a $145.3 billion deficit in November 2020. November receipts fell 1.0% while outlays rose 5.2%. Expectations had been for a $193 billion deficit in the Action Economics Forecast Survey. So far in FY'22, the deficit totaled $356.4 billion versus $429.3 billion in the first two months of last fiscal year.
Overall revenues increased 23.6% y/y so far in FY'22. Individual income tax receipts increased 39.3% y/y as employment & earnings continued strong. Corporate tax payments more than doubled as business earnings strengthened. Social insurance taxes rose 7.3% y/y in November and customs duties improved by more than one-quarter y/y.
Federal government outlays increased 3.9% year-to-date in FY'22. Strengthening by 21.8% y/y were health care outlays. Income security payments rose 12.1% y/y while Social Security outlays increased 3.6% y/y. Weakening was defense spending by 1.2% y/y after last year's 4.0% increase. Medicare payments fell 4.1% y/y so far in FY'22 and interest payments fell 2.6% y/y.
Haver's data on Federal Government outlays are contained in USECON; The expectations figure is 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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