US Budget Deficit Widens 16 Percent as Interest Costs Surge: Treasury

The U.S. budget deficit is 16 percent higher than a year ago as the federal shortfall reached $532 billion in the first four months of the fiscal year, according to new Treasury data. Last month, the federal shortfall was $22 billion, down 43 percent year over year when the monthly deficit was $39 billion. Outlays rose 3 percent, while tax receipts climbed 7 percent. A decline in tax refunds drove the sharp drop as the Internal Revenue Service (IRS) eliminated a backlog of returns that were delayed by the coronavirus pandemic. The chief spending contributors in January were led by Social Security ($121 billion), Medicare ($83 billion), health ($68 billion), and national defense ($60 billion)....