Monday, July 12, 2021

The Budget Deficit for June 2021 was $173 Billion

 The federal government incurred a deficit of $173 billion in June 2021, CBO estimates, compared with a shortfall of $864 billion in June 2020. The federal budget deficit was $2.2 trillion [$2,237 trillion] in the first nine months of fiscal year 2021, the Congressional Budget Office estimates—$508 billion less than the deficit recorded during the same period last year.  https://www.cbo.gov/system/files/2021-07/57288-MBR.pdf

There are still 3 months left in the fiscal year, and the total deficit for FY 2021 should be about $2.7 trillion.  If the infrastructure stimulus bill passes, then the deficit will be higher.  The FY 2020 deficit was $3.1 trillion, so it is possible that the 2021 deficit will be higher than that, although the infrastructure bill will be spread out over several years.

Update (7/13/21):  Note that the YTD spending for FY 2021 is higher than this point last year: 5,293 in 2021 v 5,004 in 2020.  Revenues in 2021 are much higher than in 2020 which is why the deficit is lower.  

The latest CBO projections are that spending will drop sharply in 2022 (by about $1.3 trillion).  I consider this highly unlikely.  

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