Saturday , October 1 2022

A budget deficit of $ 120 billion last July


Washington (Reuters) – The US deficit widened to $ 120 billion in July, driven by increases in health and military spending, US Treasury Department data showed Monday.

The size of the deficit was in line with expectations of analysts surveyed by Reuters.

Federal spending in July totaled $ 371 billion, up 23 percent from the same month last year, while revenue increased 12 percent to $ 251 billion, the Treasury said.

The total deficit in the first 10 months of the current fiscal year is $ 867 billion, compared to $ 684 billion for the same period last fiscal year.

The fiscal year in the US begins on October 1.

The US government's fiscal stance has been worsening since 2016 as it is affected by an aging population that has led more Americans to benefit from a federal senior health insurance program.

The increase in military spending has also fueled the deficit since President Donald Trump took office in January 2017, promising to strengthen the military.

Earlier this month, the US Congress passed a two-year budget backed by Trump that would increase spending on federal defense and other domestic programs, which could dramatically increase government debt.

In July, Washington spent $ 53 billion on defense programs, up from $ 43 billion in the same month in 2018. A finance official said health care costs increased to $ 66 billion from $ 34 billion.


Source link