MNI BRIEF: US Posts $1.613T FYTD Budget Deficit, $221B In July

The Treasury Department on Thursday reported a USD1.613 trillion budget deficit in the first ten months of the fiscal year, surging by 122% or USD887 billion compared with this point last year.

The fiscal year to date interest on the public debt was the largest on record at USD725.7 billion, up USD136 billion or 23% from the same point last year.

Receipts are also down 10% compared to last year while outlays are up 10%. Treasury last week announced it expects to borrow USD1.859 trillion by the end of this calendar year.

The monthly deficit for July was USD221 billion, up USD10 billion from a year earlier. Receipts in July were USD276 billion, down USD7 billion, or 3%, compared with the year-ago month. Outlays were USD497 billion, up USD17 billion, or 3%, compared with July 2022.

Fitch Ratings last week decided to strip the U.S. of its triple-A credit rating, citing expected fiscal deterioration over the next three years and the erosion of governance.