MNI BRIEF: US Budget Deficit Narrows to USD2.54T Through July

The U.S. rang up a USD2.54 trillion budget deficit in the first ten months of the fiscal year, smaller than the previous period last year even with a record USD302 billion shortfall in July, the Treasury Department reported Wednesday.

The Treasury said the federal deficit in the first ten months of fiscal year 2021 was down USD267 billion compared with the deficit during the same period last year. Year-to-date revenue climbed 18% while spending gained 4%. The U.S. ended fiscal year 2020 with a deficit around USD3.1 trillion.

The monthly federal budget deficit was the highest jump since March and a record for the month of July. Receipts in July were USD262 billion, down USD301 billion, or 54%, compared with the year-ago month. Outlays in July were USD564 billion, down USD62 billion, or 10%, compared with July 2020. Treasury officials on a call with reporters said outlays appear on a general deceleration trend after President Biden's USD1.9 trillion relief plan signed into law in March.