U.S. budget deficit widens 11.8% in its first quarter of fiscal year
14.01.2020 - Petr Mazaylo
U.S. budget deficit widens 11.8% in its first quarter of fiscal year

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.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?