US Budget Deficit Widens Sharply in August

The US government posted a USD 107 billion budget gap in August 2016, a 67 percent rise from a USD 64 billion deficit in the same month a year earlier and in line with market expectations of a USD 108 billion gap. Outlays rose 23 percent to USD 338 billion while receipts increased at a slower 9.5 percent to USD 231 billion.

In August 2016, outlays totaled USD 338 billion as social security accounted for USD 77 billion, Medicare for USD 55 billion, defense for USD 49 billion and interest on debt for USD 26 billion. Other outlays accounted for the remaining USD 132 billion. Meanwhile, receipts totaled USD 231 billion as individual income taxes accounted for USD 115 billion, social security and other payroll taxes for USD 89 billion, corporate income taxes for USD 1 billion and other taxes and duties for the remaining USD 26 billion.

When accounting for calendar adjustments, August would have shown a $118 billion deficit compared with an adjusted $107 billion deficit in the same month in 2015.

The fiscal year-to-date deficit was $621 billion through August, up 17 percent from a $530 billion deficit a year earlier.

US Budget Deficit Widens Sharply in August

US Treasury | Joana Taborda |
9/13/2016 6:12:08 PM