MNI BRIEF: US Budget Deficit Narrows to USD2.71T Thru August

The U.S. has rung up a USD2.711 trillion budget deficit in the first eleven months of the fiscal year, smaller than the previous period last year, despite another USD171 billion deficit in August, the Treasury Department said Monday.

In the month of August alone, there was a shortfall of USD171 billion, below expectations of a deficit of USD302 billion. As the August budget deficit came in lower than market expectations, Treasury officials on a call with reporters declined to say whether the fiscal numbers would impact their projections under the debt limit, potentially pushing back how long so-called "extraordinary measures" could last, a prospect some market analysts have suggested. Receipts in August were USD268 billion, up USD45 billion, or 20%, compared with the year-ago month. Outlays were up USD16 billion, or 4%, compared with August 2020.

The Treasury said the federal deficit in the first eleven months of fiscal year 2021 was down USD297 billion compared with the deficit during the same period last year. Year-to-date revenue has held up well, surging 18%, while spending gained 4%. The U.S. ended fiscal year 2020 with a deficit around USD3.1 trillion.