U.S. August price range deficit falls as revenues get well By Reuters

By David Lawder

WASHINGTON (Reuters) – The U.S. authorities on Monday posted a $171 billion price range deficit for August, 15% decrease than the $200 billion hole a 12 months in the past, as recovery-driven tax receipts grew quicker than outlays for COVID-19 pandemic reduction packages, the Treasury Division stated.

The August deficit was $2 billion lower than the common forecast by analysts in a Reuters survey. A U.S. Treasury official stated the August price range outcomes wouldn’t alter the division’s estimates for when Treasury’s extraordinary financing measures to keep away from breaching the $28.4 trillion debt restrict could be exhausted.

U.S. Treasury Secretary Janet Yellen final week urged Congress to extend or droop the debt restrict, saying that “money and extraordinary measures shall be exhausted throughout the month of October,” leaving the federal government unable to totally pay its obligations.

Receipts in August rose 20% from the year-earlier interval to $268 billion whereas outlays within the month had been up 4% to $439 billion. Some $59 billion in August advantages had been paid in July as a result of the month began on a non-business day.

For the primary 11 months of the 2021 fiscal 12 months, the deficit totaled $2.711 trillion, down 10% from the $3.007 trillion for a similar interval final 12 months, as revenues improved.

Yr-to-date receipts rose 18% from the identical interval final 12 months to $3.586 trillion, whereas outlays rose 4% to $6.297 trillion.