US budget deficit widens in November compared to a year ago

The United States government posted a budget deficit of $ 191 billion for November. A figure 32% higher than the gap of 145,000 million the previous year. Spending related to the pandemic generated record outlays and outpaced a sharp increase in personal income tax revenue due to the recovering economy.

The deficit November was $ 4 billion below the median estimated among economists polled by Reuters of $ 195 billion.

The federal government’s revenue for the second month of the fiscal year totaled $ 281 billion, an increase of 28% and a record for November, the Treasury Department. Individual tax revenue increased 27% to $ 244 billion.

A Treasury official said the increase is largely due to the improvement in the economy as people continue to return to work after last year’s widespread lockdowns by the Covid-19 pandemic, which triggered a short but sharp recession. .

Spending also hit a record for November, with total outlays of $ 473 billion, 30% more than the $ 365 billion in the same month of 2020. Increases in spending by the departments of Health and Human Services and the Treasury largely stemming from programs to deal with the pandemic, drove most of the increase.

For fiscal year 2022 to date, the statistic totaled $ 356 billion, a decrease of 17% from the first two months of fiscal year 2021, amid record increases in government revenue to date.

rrg