US Government Budget Gap Highest on Record for March

The US government budget deficit increased to USD 209 billion in March of 2018 from USD 176 billion in the same month of the previous year. It was the biggest gap on record for a March month. Figures came worse than market expectations of a USD 194 billion gap, as receipts declined 2.7 percent to USD 211 billion while outlays rose 6.8 percent to USD 420 billion.

In March, receipts went down 2.7 percent year-on-year to USD 210.8 billion as social security taxes accounted for USD 98 billion; individual income taxes for USD 88 billion; other taxes and duties for USD 20 billion; and corporate tax income for USD 5 billion.

In contrast, outlays rose 6.8 percent to USD 419.6 billion as other expenses accounted for USD 170 billion; social security for USD 82 billion; Medicare for USD 75 billion; defense for USD 58 billion; and interest on debt for USD 33 billion. Outlays for Military active duty and retirement, Veterans' benefits, Supplemental Security Income, and Medicare payments to Health Maintenance Organizations and prescription drug plans accelerated into March, because April 1, 2018, the normal payment date, fell on a non-business day.

Considering the first six months of the current fiscal year, the deficit widened to USD 600 billion from USD 527 billion a year earlier.

US Government Budget Gap Highest on Record for March

US Treasury | Luisa Carvalho |
4/11/2018 6:44:46 PM