The US government posted a $404 billion budget deficit for October, a record for the month, the Treasury Department said. Receipts shrank while outlays grew, and interest on the federal debt rose to $115 billion.
The US government started the 2027 fiscal year with a $404 billion budget deficit for October, a record for the month, the Treasury Department said on Thursday. The gap is $120 billion, or 42%, higher than in the year-earlier period.
Receipts fall as customs and tax collections drop
October receipts fell by $35 billion, or 9%, to $369 billion, due partly to lower net customs duty collections. Individual non-withheld taxes were $29 billion, or 36%, lower than a year earlier, when tax filing deadlines delayed for Californians affected by the 2025 wildfires swelled the total.
Calendar effects also shaped the figure. Benefit payments for November were shifted into October for both fiscal years, and after adjusting for that, the Treasury said the adjusted deficit would have been $285 billion, an increase of $94 billion, or 49%, from the year-ago period.
Outlays hit a record $773 billion
Spending, however, also set a mark. Reported October outlays came to a record for that month of $773 billion, up $84 billion, or 12%, from year-ago levels.
Two categories drove part of the increase. US Department of Agriculture spending rose $14 billion, or 80% because of farm relief payments. Military spending rose $28 billion, or 30%, representing an October payment to military trust funds that last year's government shutdown delayed, along with increases spread across operations, maintenance and procurement.
Gross interest on the federal debt also rose $11 billion, or 11%, from the previous October to $115 billion.
Source: Reuters via Investing.com
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