US starts 2027 fiscal year with record October budget deficit of $404 billion
Receipts fell 9% as outlays rose 12%, and the Treasury said the adjusted deficit would have been $285 billion after calendar shifts.
- On Thursday, the Treasury Department reported a record $404 billion budget deficit for October, marking the start of fiscal 2027. The shortfall is $120 billion, or 42%, higher than the year-earlier period.
- Outlays rose to a record $773 billion for the month, an increase of $84 billion, or 12%, from year-ago levels, while receipts fell $35 billion to $369 billion. This spending-revenue divergence drove the deficit.
- Spending increases included an 80% rise in Department of Agriculture farm relief payments and a $28 billion increase in military spending from delayed trust fund payments. Gross interest on federal debt climbed $11 billion to $115 billion.
- A 39% drop in net customs collections to $19.2 billion contributed to falling receipts. Individual non-withheld tax receipts declined $29 billion, or 36%, partly because Californians' wildfire-related filing deadlines had swelled prior-year payments.
- Treasury Secretary Scott Bessent aims to reduce the deficit to 3% of GDP, though the 2026 gap reached 6.2%. Adjusted for shifted benefit payments, October's deficit would have been $285 billion, a 49% increase from year-ago.
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US starts 2027 fiscal year with record October budget deficit of $404 billion - Regional Media News
WASHINGTON, Nov 12 (Reuters) - The US government started the 2027 fiscal year with a $404 billion budget deficit for October, a record for the month and $120 billion, or 42%, higher than the year-earlier period, as receipts shrank and outlays grew sharply, the Treasury [...]
The United States began fiscal year 2027 with a budget deficit of $404 billion over the past October, the highest deficit recorded for this month, with declining revenue and rising government spending.
US Records $404 Billion Deficit in First Month of Fiscal Year
US starts 2027 fiscal year with record October budget deficit of $404 billion
The US government started the 2027 fiscal year with a $404 billion budget deficit for October, a record for the month and an increase of $120 billion or 42% from the year-earlier period, as receipts shrank and outlays grew sharply, the Treasury Department said on Thursday.
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