US budget deficit shrinks to $66 billion in June after calendar changes

The U.S. government ran a budget deficit of $66 billion in June, which was narrowed significantly by a shift in benefits to May, pushing the deficit to $347 billion that month, the Treasury Department reported Thursday.

According to the Treasury Department, the $66 billion deficit in June is a nominal 71 percent reduction from the $228 billion deficit in June 2023.

Without the June calendar adjustments in both years, the deficit in June 2024 would have been $159 billion, an increase of 3 percent or $5 billion from the gap a year ago.

June revenues were $466 billion, up 11 percent from June 2023. But the increase was partly due to another calendar effect: deferrals of unwithheld income tax payments in many states last year due to natural disasters that delayed June 2023 revenues.

June spending fell 18 percent to $532 billion, but without calendar adjustments — made because June 2024 and July 2023 both start on a weekend — spending would have risen 11 percent to $625 billion. The month’s spending also included a $60 billion increase for the Department of Education’s revision to long-term student loan subsidies due to recent changes to debt restructuring.

For the first nine months of fiscal year 2024, the following applies to the US:

The deficit narrowed 9 percent to $1.268 trillion from $1.393 trillion in the same period of fiscal 2023. The government’s fiscal year ends Sept. 30.

Revenues rose 10 percent to $3.754 trillion last year, while spending rose 5 percent to $5.022 trillion in the period, the Treasury Department said.

First print: Jul 12, 2024 | 12:01 AM IST

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