June Budget Deficit Narrows to $120.3 Billion
Federal receipts climbed from May levels while outlays dipped slightly, though the monthly deficit remains significantly higher than a year ago.
The federal budget deficit fell to $120.3 billion in June. This represents a $172.3 billion decrease from the $292.6 billion deficit recorded in May. Despite the monthly improvement, the deficit expanded by $147.3 billion compared to the $27.0 billion gap seen in June of the previous year.
Receipts drove the monthly narrowing, rising 47.8% to $495.8 billion from May's $335.5 billion. However, June collections were $30.7 billion lower than the $526.4 billion gathered during the same month last year. Outlays provided a smaller tailwind, slipping 1.9% to $616.1 billion from $628.2 billion in May. Year-over-year, spending surged 23.4% from $499.4 billion.
Fiscal-year-to-date revenue shows a divergence between individual and corporate contributions. Individual income tax receipts rose by $136.3 billion to $2,195.7 billion. In contrast, corporation income tax receipts fell 23.7% to $279.3 billion. Customs duties provided a notable boost, increasing 50.9% to $163.0 billion.
Spending growth is concentrated in the Treasury and health sectors. The Department of the Treasury saw fiscal-year-to-date outlays climb by $120.0 billion to $1,270.6 billion. The Department of Health and Human Services followed with a $98.3 billion increase to $1,474.3 billion.
Some agencies saw significant spending contractions. Department of Education outlays dropped 54.5% to $45.8 billion. Social Security Administration spending grew more modestly, rising $63.2 billion to $1,293.4 billion.
*Source: U.S. Treasury Monthly Treasury Statement.*