US Government Budget Surplus Widens In April


The US government posted a USD 182 billion budget surplus in April of 2017, compared to a USD 106.5 billion surplus a year earlier and well above market expectations of USD 175.9 billion deficit. Outlays decreased 18 percent to USD 273 billion while receipts rose by 4 percent to USD 456 billion.

In April, social security accounted for USD 79 billion of total outlays, medicare for USD 22 billion, defense for USD 40 billion, interest on debt for USD 27 billion and other expenses for the remaining USD 104 billion. Regarding receipts, social security and other payroll taxes accounted for USD 123 billion, individual income taxes for USD 249 billion, corporate income taxes for USD 90 billion and other taxes and duties for the remaining USD 24 billion.

Outlays for military active duty and retirement, veterans' benefits, supplemental security income, and medicare payments to health maintenance organizations and prescription drug plans accelerated into March, because April 1, 2017, the normal payment date, fell on a non-business day. The impact of large individual tax deposits resulted in budget receipts of USD 455.6 billion and a surplus of USD 182.4 billion. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 shifted the final payment due date for most corporations from mid-March to mid-April. As a result, a significant amount of corporation income tax receipts moved from March to April. 

When adjusting for calendar effects, the April 2017 surplus was USD 145 billion compared with USD 146 billion surplus a year ago.

The fiscal 2017 year-to-date deficit narrowed to USD 344 billion compared with USD 353 billion in the same period of fiscal 2016.

US Government Budget Surplus Widens In April


US Treasury | Yekaterina Guchshina | yekaterina@tradingeconomics.com
5/10/2017 6:17:53 PM