July Federal Deficit Widens to $432.3 Billion
A surge in monthly outlays and a dip in receipts drove the deficit higher than the same period last year.
The federal budget deficit reached $432.3 billion in July. This figure represents a $312.0 billion increase from the $120.3 billion deficit recorded in June and a $141.2 billion increase compared to the $291.1 billion deficit in July of the previous year.
Federal outlays climbed to $766.3 billion in July. Spending rose by $150.3 billion from June's $616.1 billion and exceeded last July's outlays of $629.6 billion by $136.7 billion. Meanwhile, federal receipts fell to $334.0 billion. This was a $161.8 billion decrease from the $495.8 billion collected in June and a $4.5 billion decline from the $338.5 billion collected in July last year.
Fiscal-year-to-date revenue shows a divergence between individual and corporate contributions. Individual income tax receipts rose by $164.5 billion to $2,369.0 billion, while corporation income tax receipts fell by $94.2 billion to $292.9 billion. Other gains include an $18.8 billion increase in customs duties to $154.5 billion and a $9.9 billion rise in estate and gift taxes to $34.0 billion. Social insurance and retirement receipts increased by $42.4 billion to $1,522.7 billion.
Spending across major agencies has largely trended upward for the fiscal year. The Department of Health and Human Services saw outlays increase by $167.9 billion to $1,724.9 billion, and the Department of the Treasury's spending rose by $140.7 billion to $1,407.4 billion. The Social Security Administration's outlays grew by $76.6 billion to $1,445.0 billion, and the Department of Veterans Affairs increased spending by $50.5 billion to $360.0 billion.
Department of Education outlays provided a rare decrease, falling by $78.5 billion to $52.9 billion compared to $131.5 billion a year earlier.