U.S. budget deficit widens 11.8% in its first quarter of fiscal year
The U.S. budget deficit widened to $356.6 billion in the first three months of fiscal 2020 as spending rose more than revenue. This would keep the federal shortfall on pace to exceed $1 trillion by the end of the year.
The gap increased 11.8% from the $318.9 billion in October-December of the previous year, the Treasury Department said on Monday in its monthly budget report. Government outlays increased 6.7%, while receipts rose 4.6%. The U.S. posted a $13.3 billion deficit in December alone compared with $13.5 billion a year earlier.
The three biggest spending categories that increased in the quarter were social security, national defense, and Medicare. Outlays rose to $285 billion for social security, to $187 billion for the military and to $393 billion for Medicare and Medicaid. Those overshadowed corporate income taxes, which jumped by 23% to $65 billion, and individual taxes which were about 3% higher at $385 billion.
The fiscal deficit is set to surpass $1 trillion in fiscal 2020, according to the Congressional Budget Office making it the highest since the financial crisis. As a share of gross domestic product, though, the total deficit will only be about 5%, compared with double that in the recession.
AstraZeneca estimates 2021 growth after beating 4th quarter sales, sees faster growth
09.02.2021Singapore to lessen 2021 spending after record budget deficit
08.02.2021Japan’s economic rebound likely dwindled in fourth quarter
05.02.2021Crude supply cut, U.S. growth optimism buoy oil prices to reach highest in a year
