Find a list of your saved stories here

US budget deficit rose in June to $90.2 billion


1 photo
Save Story

Save stories to read later


Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON (AP) — The federal budget deficit rose sharply in June compared to a year ago, although much of the increase reflected calendar quirks.

The Treasury Department said Thursday the June deficit totaled $90.2 billion compared to a surplus in June 2016 of $6.3 billion. However, outlays grew by $39 billion this year because benefit payments that normally would have been distributed in July were made in June since July 1 fell on a Saturday.

Through the first nine months of this budget year, the deficit totals $523.1 billion, up from a deficit of $399.2 billion during the same period a year ago.

The Congressional Budget Office released an updated forecast last month that projected the deficit for this year will total $693 billion. That represented a sharp increase of $134 billion from CBO's January forecast. The deficit in 2016 totaled $585.6 billion.

CBO blamed much of this year's increase on the fact that the government is collecting less money in tax revenue this year than had been expected.

For this budget year, which began Oct. 1, revenues total $2.51 trillion, up 1.6 percent from the same eight months last year. Outlays have risen 5.7 percent during the same period to $3 trillion.

Congress is facing a deadline of Oct. 1 for getting a budget approved for the next fiscal year or face the prospect of a government shutdown. The expectation is that lawmakers will pass a stop-gap spending measure to buy time to iron out differences.

In addition, the CBO has said that Congress will need to increase the government's borrowing limit by mid-October in order to avoid a catastrophic default on the national debt.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Photos

Most recent Business stories

Related topics

Business
MARTIN CRUTSINGER

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast