Economic Report: U.S. budget deficit widens to $248.5 billion in November

by | Dec 12, 2022 | Stock Market

The numbers: The U.S. federal budget deficit widened to $248.5 billion in November, up from $191.3 billion in the same month last year, the Treasury Department said Monday.   For the first two months of the fiscal year, the deficit narrowed to $336.4 billion, down from $356.4 billion in the same period last year.

Key details: In November, government receipts fell while spending increased, the department said. Receipts were down $29 billion to $252 billion from a year ago while outlays rose $28 billion to $501 billion. Interest on the federal debt was $48 billion higher over the first two months of the fiscal year than from the same period a year earlier. The Federal Reserve’s rapid increase in interest rates is leading to higher interest payments. Tax refunds were $12 billion higher over the same period as the Internal Revenue Service continued to work through a backlog of individual tax returns. There were no remittances to the Treasury from the Fed in November after $8 billion was sent in the same month last year. Higher short-term interest rates have raised the U.S. central bank’s interest expenses above its income. Big picture: …

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