LATEST NEWS
 Top Stories
 U.S.
  Severe Weather
  Bird Flu
 World
  Castro
  Mideast Crisis
  Iraq
 Business
 Personal Finance
 Technology
 Sports
  Sports Columns
  NASCAR
  Baseball
  College Hoops
  NBA
  NHL
  Tennis
  Golf
 Entertainment
 Health
 Science
 Politics
 Washington
 Offbeat
 Podcasts
 Blogs
 Weather
 Raw News
 NEWS SEARCH
 
 Archive Search
 SPECIAL SECTIONS
 Multimedia Gallery
 AP Video Network
 Today
 in History
 Corrections
Dec 12, 2:30 PM EST

US budget deficit totals $138.5 billion in November



Latest Budget News
Hurricane state Republicans demand disaster aid by Christmas

Multimedia
Obama's 2011 budget
Interactive National Debt
See the Debt Today, and Through History
Multimedia
The U.S. Trade Deficit

WASHINGTON (AP) -- The federal government collected a record amount of tax income for the month of November and also had a record level of spending for the month, producing a budget deficit of $138.5 billion, up slightly from a year ago.

The November deficit was 1.4 percent higher than a year ago, reflecting in part higher spending to deal with disaster relief and also higher spending by the Treasury Department on interest payments on the national debt, the Treasury Department reported Tuesday.

For the first two months of this budget year, the budget deficit totals $201.8 billion, up 10.6 percent from the same period a year ago.

The spending increases pushed total outlays in November to $346.9 billion, a record for the month, while receipts totaled $208.3 billion, also a record for November.

The rise in revenues compared to a year ago was led by an $11 billion increase in individual income tax withholding and payroll taxes for Social Security, reflecting more people working as the unemployment rate has fallen to a 17-year low of 4.1 percent.

The increase in outlays compared to November 2016 reflected an increase of $5 billion in spending by the Department of Homeland Security, primarily for hurricane disaster relief, and a $9 billion rise in interest payments on the debt, an increase that reflected higher inflation which boosted outlays by Treasury on its inflation-protected securities.

The Congressional Budget Office in June projected that the budget deficit for this budget year, which began on Oct. 1, would total $563 billion but that forecast did not include lost revenue from the GOP tax cut package, which Republicans hope to get passed before Christmas.

Private forecasters say this year's deficit is likely to rise to $675 billion and will be approaching $1 trillion by 2019, reflecting increased government spending and the tax cuts.

The Trump administration disputes those figures, contending that the tax cut legislation will not widen the deficit as much as has been forecast because the cuts will spur faster economic growth. The deficit for the 2017 budget year, which ended on Sept. 30, totaled $665.7 billion.

For the first two months of this year, revenues total $443.7 billion, up 5.3 percent from a year ago, while spending totals $645.5 billion, an increase of 6.9 percent from a year ago.

© 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.