Treasury Statement: August Figures Confirm that US Deficit Will Be Close to 4% of GDP in Fiscal 2013
According to the Monthly Treasury Statement, the US government reported a deficit of $148 billion in August. These figures were slighlty higher than the $146 billion deficit expected by the CBO and by economists surveyed by Bloomberg.
Revenue climbed 3.6% YoY to $185.3B, while outlays plunged 9.8% YoY to $369.4B. As a consequence, in August, the deficit decreased by 22% compared to last year at the same period. This reduction could be larger to the textent that:
Since September 1, 2013, the normal date for these expenditures, fell on a non-business day, outlays for military active duty and retirement, Veterans’ benefits, Supplemental Security Income and Medicare payments to Health Maintenance Organizations moved to August 30, 2013.
The August budget gap brings the deficit for the 2013 fiscal year to $755 billion almost 35% below the $1.16 trillion for the first 11 months of fiscal 2012. In this context, the Treasury Department remains on course for its first full-year shortfall below $1 trillion since 2008. Therefore, the deficit could only reach 4% of GDP in fiscal 2013 as predicted by CBO (Congressional Budget Office).