US Government Records Higher-Than-Expected Budget Deficit to Kick Off Fiscal Year 2024

The U.S. government posted a higher-than-expected $67 billion budget deficit in the first month of the new fiscal year, the smallest October shortfall since 2017, according to new data from the Treasury Department. Last month, the budget deficit tumbled by 24 percent from a year ago when it came in at $88 billion. In October, federal outlays totaled $470 billion, up nearly 16 percent year-over-year. Last month’s spending was fueled by Social Security ($117 billion), national defense ($87 billion), health ($71 billion), and income security ($23 billion). Interest payments were the second-largest spending item for the month, exceeding $88 billion. Federal receipts surged 27 percent year-over-year, topping $403 billion. This was an all-time high for the month, driven by incoming tax payments from California and several other states that extended their tax filing deadlines because of natural disasters. They supported a large share of the 70 percent jump in individuals’ non-withholding taxes and the 170 percent spike in corporate tax receipts....